Gold prices fell below $4000 per ounce due to the escalation around the Strait of Hormuz
Kyiv • UNN
Global gold prices dropped below $4000 per ounce amid the escalation of the conflict around the Strait of Hormuz. Investors are also awaiting signals from the new Fed chair regarding interest rates.
World gold prices continued to decline, falling below the $4,000 per troy ounce mark amid the escalation of the conflict around the Strait of Hormuz and expectations of tighter monetary policy by the US Federal Reserve System. This is reported by Bloomberg, writes UNN.
Details
After falling nearly 3% on Monday, the largest daily decline in more than two weeks, the spot gold price stood at $3,996.63 per ounce on Tuesday morning. Investor sentiment was influenced by statements from US President Donald Trump about a 20% compensation for cargo passing through the Strait of Hormuz, as well as the resumption of the American naval blockade of Iranian ports and new strikes on Iran.
Additional attention from markets is focused on the first speech of the new Fed Chairman Kevin Warsh before the US Congress and the release of inflation data for June. Investors expect signals regarding further decisions of the Federal Reserve System on interest rates.
Against the backdrop of trading, silver prices also fell to $57.50 per ounce. The price of platinum decreased slightly, while palladium showed a slight increase.