Gold prices are falling amid expectations of talks between the U.S. and Iran
Global gold prices continued to fall on Tuesday amid investor expectations of a possible resumption of peace talks between the U.S. and Iran, as well as against the backdrop of a strengthening U.S. dollar.
This was reported by Reuters.
The spot price of gold fell by 0.7% to $4,785.99 per ounce, extending its decline after hitting its lowest level since April 13 the previous day. Meanwhile, gold futures for June delivery fell by 0.5% to $4,803.50.
Additional pressure on the market came from the rise in the U.S. dollar, which makes precious metals more expensive for investors using other currencies.
Geopolitical factors are also influencing market sentiment. In particular, Iran is considering participating in talks with the U.S. in Pakistan following Islamabad’s steps to ease tensions. Investors are waiting to see if these talks will take place, as well as whether the ceasefire will be extended or a broader peace agreement reached.
Analysts note that if progress is made in the talks, gold could find support due to a potential decline in oil prices. At the same time, a failure of diplomatic efforts could bring high volatility back to the markets.
In addition, investors are monitoring upcoming hearings in the U.S. Senate regarding Kevin Warsh’s nomination for the position of Federal Reserve Chair. He is expected to reaffirm his commitment to an independent monetary policy.
Other precious metals also saw declines: silver fell 1.4% to $78.80 per ounce, platinum lost 0.8% to $2,072.22, and palladium dropped 0.3% to $1,547.25.
Currently, global markets are seeing a moderate decline in the price of gold amid tense anticipation of the expiration of the ultimatum that U.S. President Donald Trump issued to Iran.
As a reminder, the Bank of France received nearly €13 billion after repatriating gold from the U.S.
Gold prices also fell below $4,500 per ounce for the first time since February.
