Global gold prices declined after U.S. President Donald Trump rejected Iran's latest peace proposal to end the conflict in the Strait of Hormuz region. This was reported by Bloomberg, according to UNN.
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The spot price of gold fell by 0.6% to $2,689.29 per ounce. Silver dropped by 0.8%, and prices for platinum and palladium also decreased.
Last week, gold rose by approximately 2%, but markets reacted again to the escalation of the situation following Trump's statements that Iran's response to the American peace proposal is "absolutely unacceptable."
Markets fear a new wave of inflation
Bloomberg notes that the prolonged conflict in the Middle East increases inflation risks and maintains expectations of high interest rates in the U.S.
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Additional concern was caused by new incidents in the Persian Gulf. In particular, a cargo ship caught fire off the coast of Qatar as a result of a drone attack. The UAE and Kuwait also reported intercepting hostile drones.
Investors are awaiting the publication of new U.S. inflation data, which is due on Tuesday. Against the backdrop of a stable labor market, the Federal Reserve may maintain high interest rates due to risks associated with the war surrounding Iran.
Trump rejected Iran's counter-proposals regarding the plan to end the war11.05.26, 00:13