Gold fell for the tenth consecutive session on Tuesday, amid high geopolitical uncertainty and growing concerns over the impact of the Middle East conflict on inflation and global economic growth. This morning, the yellow metal edged down 0.06%, trading at $4,404.7 per ounce. In contrast, silver rose 0.75% to $69.7 per ounce, bucking gold’s downward trend.
Price movements come as markets continue to react to developments in the conflict between Iran and the United States. The U.S. five-day postponement of potential strikes on Iranian energy infrastructure, announced by President Donald Trump, briefly stabilized gold prices.
However, relief was short-lived after Iranian authorities rejected any possibility of negotiations, and reports suggested that U.S. allies in the Persian Gulf could join a potential offensive.
Traditionally seen as a safe-haven asset during periods of instability, gold has nevertheless posted significant losses since the conflict began. In the previous session, the metal fell about 2%, marking nine consecutive declines and a cumulative drop of nearly 17% from the start of the war through Monday’s close.
Analysts attribute the current pressure on gold mainly to rising energy prices, which have fueled expectations of higher global inflation. This scenario reinforces the prospect of tighter monetary policies from central banks, including the U.S. Federal Reserve.
The possibility of further interest rate hikes tends to penalize gold, as a non-yielding asset becomes less attractive compared with income-generating alternatives. At the same time, uncertainty surrounding the conflict’s outcome and disruptions to energy transport through the strategic Strait of Hormuz continue to influence investor sentiment.
Source: Expansão
