Gold Extends Losing Streak as Iran Denies U.S. Talks
Gold prices declined for a tenth consecutive session during Asian trading on Tuesday, as Iran rejected claims of negotiations with the United States following President Donald Trump’s decision to delay further strikes on Iran’s energy infrastructure.
Spot gold fell 0.7% to $4,376.04 per ounce, while U.S. gold futures dropped 0.6% to $4,413.59.
Recent Declines Push Gold to Multi-Month Low
In the previous session, gold had plunged to its lowest level in four months before recovering slightly to close about 2% lower. The continued downward trend reflects weakening investor demand despite ongoing geopolitical tensions.
Middle East Tensions Remain Elevated
President Trump postponed a planned strike on Iran’s power grid, citing “productive” discussions with Iranian officials. This announcement initially eased market fears and contributed to a drop in oil prices, helping gold stabilize temporarily.
However, Iran’s Parliament Speaker, Mohammad Baqer Qalibaf, denied that any talks had taken place, adding to market uncertainty. Meanwhile, reports of continued missile exchanges between Iran and Israel indicate that tensions in the region remain high.
Interest Rate Expectations Weigh on Gold
Beyond geopolitical developments, investors are closely monitoring the macroeconomic outlook, particularly interest rate expectations. Rising energy prices have fueled concerns that inflation could remain elevated for longer.
As a result, markets are increasingly expecting central banks, including the Federal Reserve, to maintain higher interest rates for an extended period.
Strong Dollar Adds Pressure on Precious Metals
Higher interest rates tend to weigh on gold, as the non-yielding asset becomes less attractive compared to interest-bearing investments like government bonds. The U.S. Dollar Index rose 0.4% on Tuesday, further pressuring gold prices.
Other precious metals also moved lower, with silver declining 0.4% to $68.91 per ounce and platinum slipping 0.3% to $1,883.05 per ounce.
Broader Commodities Also Decline
In industrial metals, copper prices fell as well. London Metal Exchange copper futures dropped 1.4% to $12,022.33 per ton, while U.S. copper futures declined 1.3% to $5.41 per pound.
