Gold prices fall for the third consecutive day amid escalating conflict between the US and Iran
Kyiv • UNN
The price of gold dropped to $4,036 following US strikes on Iran. Investors are selling off precious metals en masse amid inflation rising to 4.2%.
Global gold prices continued their decline for the third consecutive day following new US strikes on Iran and Washington's statements regarding its readiness to continue military actions. This was reported by Bloomberg, according to UNN.
Details
During trading in Asia, the price of gold decreased by another 0.9% to $4,036 per ounce. The previous day, the metal lost another 4.4% in value.
The decline occurred after the US military reported missile strikes on several targets in Iran. US President Donald Trump accused Tehran of stalling negotiations on a temporary peace settlement, while Iran declared its readiness to respond.
War intensifies inflationary risks
The conflict surrounding Iran has already impacted global energy markets. Disruptions to supplies through the Strait of Hormuz caused oil prices to rise and heightened fears of a new wave of inflation.
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According to the US Bureau of Labor Statistics, inflation in the country accelerated to 4.2% in annual terms in May—the highest figure since the beginning of 2023.
Investors continue to sell gold
Bloomberg notes that the price of gold is already more than 20% lower than the level recorded before the start of the war between the US and Iran in late February.
Additional pressure on the market was created by the metal's price falling below the 200-day moving average—a key technical indicator used by major investors.
In addition to gold, other precious metals also depreciated. Silver lost 1.4% and was trading at $62.46 per ounce. Prices for platinum and palladium also declined.