- BIST10011,430-2.49%
- USD49.45+0.05%
- EUR55.62+0.37%
- GOLD4,155.80-0.10%
- INTEREST37.00%-1.00
- BITCOIN81,684-0.20%
- October 20, 202612°
- BIST10011,430-2.49%
- USD49.45+0.05%
- EUR55.62+0.37%
- GOLD4,155.80-0.10%
- INTEREST37.00%-1.00
- BITCOIN81,684-0.20%
- October 20, 202612°
Gold falls to two-week low as US-Iran tensions escalate
Spot gold fell 0.8% to $4,417.04 an ounce on Monday, reaching its lowest level in about two weeks. US gold futures also declined 1.4%.
Renewed military tensions between the US and Iran pushed gold prices lower on Monday. Spot gold fell 0.8% to $4,417.04 an ounce, reaching its weakest level since August 19.
Gold fluctuated between $4,396 and $4,472 in morning trading. The daily loss ranged from 0.3% to 0.8% compared with the previous session's close. US gold futures fell 1.4% to about $4,466.80.
Oil prices and interest-rate expectations exerted pressure
Market analysts said developments following the US attack on Lark Island near the Strait of Hormuz contributed to the decline in gold prices. Iran said it had launched missile and drone strikes against locations it identified as US bases in Jordan and the United Arab Emirates.
During the escalation in the region, oil prices rose by about 4% in some trading sessions, climbing above $90 a barrel. Analysts said the move in oil prices strengthened expectations that inflationary pressures could persist.
Federal Reserve Chair Kevin Warsh's indication that a rate hike might be necessary to ease price pressures also reduced the appeal of gold, which pays no interest. The precious metal was hurt by expectations of higher interest rates.
Iran announces strikes in Jordan and the United Arab Emirates
Iran said Monday morning that it had carried out missile and drone strikes against positions in the United Arab Emirates and Jordan that it alleged belonged to US forces. Tehran said the strikes were retaliation for an operation it attributed to the US and Israel near Lark Island.
The United Arab Emirates denied claims that an air base in the country had been hit by missiles and said it had intercepted an Iranian drone. Jordan's military also announced that eight missiles had been intercepted and destroyed, without identifying their source or target.
Iran's Islamic Revolutionary Guard Corps said on Sunday that the US military's attack on Lark Island had caused deaths and injuries, including among civilians, and announced that retaliation would follow.
Washington-Tehran talks disrupted by Strait of Hormuz dispute
Iran said the US and Israeli attacks on Iran on February 28 had caused more than 3,000 deaths. Tehran said US and Israeli citizens had been killed in the attacks it carried out in response.
Washington and Tehran began negotiations after signing a memorandum of understanding on June 18. However, a dispute over maritime traffic in the Strait of Hormuz, which is strategically important for energy and goods shipments, disrupted the talks.
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