Precious metals lose value as dollar strengthens and Fed rate hike expectations rise
Gold, silver, and platinum prices fell due to a rise in the US dollar index and increased expectations of a Federal Reserve interest rate hike. The decline occurred despite US President Trump's announcement of progress in negotiations with Iran.
Precious metals lost value under pressure from a strengthening US dollar and rising expectations that the Federal Reserve (Fed) will tighten monetary policy.
The rise in the dollar index and predictions that the Fed will raise or maintain high interest rates created additional pressure on non-yielding assets like gold, silver, and platinum.
The spot price of gold per ounce fell by 2 percent to $4,126.
The price of silver per ounce dropped by 4.3 percent to $63.
Platinum was also among the metals that lost value, declining by 2.5 percent to $1,650 per ounce.
Trump's statement on Iran
These declines came despite US President Donald Trump stating there was "positive progress" in negotiations to end the war between Washington and Tehran.
Responding to a question from journalists at the White House about whether Iran was a bargaining chip against the US, Trump noted that Tehran had suffered "heavy losses."
On a question regarding the Strait of Hormuz, Trump said, "It remains open and will stay open."
Iran and the US announced on June 14 that they had reached a 14-point memorandum of understanding, mediated by Pakistan, aimed at stopping the war and resolving disputes between the parties through dialogue and negotiations.
The agreement, called the "Islamabad Memorandum," entered into force on June 18 after being electronically signed by Iranian President Masoud Pezeshkian and US President Donald Trump.
The memorandum includes issues such as ending the war in Lebanon, reopening the Strait of Hormuz, and lifting the US naval blockade on Iran.
