Gold prices remain near the $4,740 per ounce mark following heightened inflation fears due to the situation surrounding the Strait of Hormuz and the war with Iran. This was reported by Bloomberg, according to UNN.
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As of the morning in Singapore, the spot price of gold rose to $4,742 per ounce. The previous day, the precious metal added 0.4% amid rising oil prices and increased nervousness in financial markets.
U.S. President Donald Trump stated that Iran's response to the American peace proposal was "garbage," and that the situation regarding the ceasefire in the Strait of Hormuz is on a "massive life-support system." Against this backdrop, traders expect further pressure on global energy markets.
Markets await new U.S. inflation data
Investors are also preparing for the publication of a new U.S. inflation report. Economists predict a significant acceleration in consumer price growth due to rising energy costs, which have already impacted the manufacturing and agricultural sectors.
Against this background, Trump has launched a new campaign against rising gasoline and beef prices, as inflation could hurt the Republicans' positions ahead of the Congressional elections.
Bloomberg notes that additional support for gold was provided by falling U.S. bond yields and a weakening dollar. Meanwhile, silver rose by more than 7% in a day, marking its sharpest jump in the last month.
Gold prices drop after Trump rejects Iran's proposal11.05.26, 04:50