US-Iran Conflict Heats Up, Gold Prices Dragged Down
Gold prices were under pressure again on Wednesday (June 10th). Spot gold fell around 2% to around US$4,100 per ounce, after briefly touching US$4,173. This decline pushed gold back below the psychological level of US$4,200.
Pressure arose after the United States launched attacks on several locations in Iran. The attacks were carried out in retaliation for the downing of a US military helicopter near Omani waters, which President Donald Trump blamed on Tehran. This situation has once again threatened the ceasefire in the Middle East.
These tensions have also raised concerns about the Strait of Hormuz, a vital global energy shipping route. If the conflict disrupts oil supplies, energy prices are at risk of rising and could trigger a resumption of global inflation. This situation has made the market even more cautious.
While geopolitical conflicts typically support gold as a safe haven asset, this time the impact is different. Rising oil prices have actually fueled inflation concerns and increased the likelihood of higher interest rates. This situation puts pressure on gold because the precious metal does not provide returns like bonds.
From a technical perspective, gold is increasingly vulnerable after prices fell below the 200-day moving average. This level is often watched by large investors as a marker of long-term trends. If selling pressure continues, the next support level is estimated to be around US$4,100 per ounce.
Overall, gold's weakness indicates that the market is not only viewing the conflict as a safe haven. Investors are also considering its impact on oil, inflation, bond yields, and the direction of the Fed's interest rate policy. As long as the risks of inflation and high interest rates remain strong, gold has the potential to remain under pressure. (asd)*
Source: Newsmaker.id
