Gold Prices Slip as Fresh US-Iran Strikes Dampen Peace Deal Hopes
Gold prices moved lower during Asian trading on Tuesday after the latest military strikes by the United States against Iran weakened market optimism over a potential peace agreement between the two nations.
The US dollar remained steady, while oil prices rebounded following reports of renewed US military action against Iran. The stronger dollar and rising crude oil prices pressured gold, limiting the precious metal’s recent bullish momentum.
Spot gold declined 0.8% to $4,535.17 per ounce as of 08:37 WIB, while gold futures dropped 0.8% to $4,568.67 per ounce.
Other precious metals also traded lower. Spot silver fell 2.1% to $76.4495 per ounce, while spot platinum slipped 0.6% to $1,955.02 per ounce.
Gold and other safe-haven assets had posted solid gains in recent sessions after reports suggested that the United States and Iran were close to reaching a framework agreement to reopen the Strait of Hormuz.
However, reports released late Monday indicated that the US had launched fresh military strikes against Iran, reducing hopes for a near-term diplomatic breakthrough between the two countries.
According to US media reports, the military targeted missile launch facilities and mine-laying vessels located in southern Iran.
The escalating geopolitical tensions helped the US dollar stabilize after recent losses and pushed oil prices higher following a week of declines.
Rising oil prices have increased concerns about inflationary pressures stemming from the Iran conflict. Investors remain worried that energy-driven inflation could force major global central banks to maintain a more hawkish monetary policy stance, which has continued to weigh on gold prices throughout the year.