Gold prices declined amid renewed hostilities in the Persian Gulf and inflation concerns that could force central banks to keep interest rates high for longer. This was reported by Bloomberg, according to UNN.
Details
At the start of trading, gold lost some of its value after a 1.4% drop on Tuesday. Meanwhile, military clashes between the US and Iran near the Strait of Hormuz continued, despite statements from both sides regarding progress in negotiations for a temporary peace deal. US Secretary of State Marco Rubio stated that finalizing the agreements "will likely take a few more days."
TD Securities analyst Ryan McKay noted that the market remains vulnerable due to inflationary risks.
"While hope for a US-Iran deal provides some support, the situation remains volatile, and inflation fears continue to weigh on precious metals,"
According to him, "price asymmetry remains heavily skewed to the downside."
As of 7:37 a.m. Singapore time, the spot price of gold rose by 0.1% to $4,514.48 per ounce. Silver added 0.5% and was trading at $77.25 per ounce. Platinum and palladium prices also rose, while the Bloomberg Dollar Index remained virtually unchanged.
Rubio says Iran deal could take days amid new US strikes26.05.26, 09:19