Gold trades near $4020 per ounce after falling nearly 24% since the start of the war
Kyiv • UNN
Global gold prices have fallen nearly 24% since the start of the war, trading near $4020 per ounce. Investors are assessing conflicting signals regarding US-Iran negotiations and inflation risks.
Global gold prices continue to decline amid uncertainty surrounding future negotiations between the United States and Iran, as well as persistent inflationary risks. This is reported by Bloomberg, writes UNN.
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Spot gold traded near $4,020 per ounce after falling nearly 2% during the previous trading session. Since the start of the war in late February, the value of the precious metal has dropped nearly 24%, and last week it briefly fell below the $4,000 per ounce mark.
According to Bloomberg, investors are assessing conflicting signals regarding negotiations between the United States and Iran. Washington states that the meeting is to take place on Tuesday in Doha, while Tehran has reported sending a delegation of experts but ruled out direct talks with the United States.
An additional factor of uncertainty came from statements by Iran's Deputy Foreign Minister Kazem Gharibabadi about Tehran's intention to continue implementing plans to control shipping in the Strait of Hormuz.
Bloomberg notes that the rise in energy prices caused by the war has strengthened expectations for a longer maintenance of high interest rates by central banks. This negatively impacts gold, which does not yield interest income.
Additionally, the US Supreme Court allowed Federal Reserve Chair Lisa Cook to remain in her position while litigation continues regarding attempts by President Donald Trump's administration to remove her. According to Bloomberg, this decision strengthens the independence of the Fed, which is under pressure due to discussions on further interest rate policy.