Gold Falls as US-Iran Negotiations Halts
Gold prices declined on Monday (June 1), as diplomatic efforts to end the war in Iran showed no signs of progress. Concerns about a potential spike in inflation due to energy prices continued to loom over the market.
At 9:51 a.m. Eastern Time (1:51 p.m. GMT), spot gold fell 1.7% to $4,462.54 per ounce, while gold futures fell 2.3% to $4,487.80 per ounce.
David Morrison, Senior Market Analyst at Trade Nation, noted that investors remain cautious as significant differences over Iran's nuclear program and the future of the Strait of Hormuz increase uncertainty.
Recent reports suggest that Iran's negotiating team has halted communications with the US through mediators following Israel's attack on Lebanon, according to Tasnim News Agency. Iran has also confirmed plans to completely close the Strait of Hormuz and activate other channels, including the Bab El-Mandeb, a vital maritime passage connecting the Red Sea with the Gulf of Aden.
Tensions escalated after the US military attacked radar and drone control sites in Iran, in response to Tehran's shooting down of an American drone over the weekend. Iran then launched a retaliatory attack, while Kuwait reported intercepting the drones and missiles.
This situation prompted investors to reassess their safe-haven asset positions, with gold facing pressure from rising bond yields and heightened geopolitical risks, while potential energy inflation continues to overshadow the global market outlook. (yds)*
Source: Newsmaker.id
