- BIST10012,070-0.40%
- USD49.39+0.05%
- EUR55.30+0.16%
- GOLD4,176.30+0.15%
- INTEREST37.00%-1.00
- BITCOIN82,217+0.10%
- October 16, 202614°
- BIST10012,070-0.40%
- USD49.39+0.05%
- EUR55.30+0.16%
- GOLD4,176.30+0.15%
- INTEREST37.00%-1.00
- BITCOIN82,217+0.10%
- October 16, 202614°
Gold falls to two-week low amid US-Iran tensions
Spot gold fell 0.8% to $4,417.04 an ounce on Monday, reaching its lowest level in nearly two weeks.
Spot gold fell to its lowest level in nearly two weeks on Monday as military tensions between the United States and Iran escalated again.
Gold fell 0.8% to $4,417.04. The precious metal thus reached its weakest level since August 19.
In morning trading, gold ranged between $4,396 and $4,472 an ounce. The daily loss varied between 0.3% and 0.8% compared with the previous session's close.
US gold futures fell 1.4% to approximately $4,466.80.
Oil prices and interest-rate expectations weigh on gold
Market analysts said developments following the US attack on Lark Island near the Strait of Hormuz contributed to gold's decline. Iran subsequently launched missile and drone attacks on locations it said housed US bases in Jordan and the United Arab Emirates.
The escalation in the region pushed oil prices above $90 a barrel in some trading, with an increase of about 4%. Experts said the move strengthened expectations that inflationary pressures could persist.
Federal Reserve Chair Kevin Warsh's indication that an interest-rate hike might be necessary to ease price pressures also reduced gold's appeal. The precious metal, which does not provide interest income, was negatively affected by expectations of higher interest rates.
Mutual statements from the region
Iran said on Monday morning that it had carried out missile and drone attacks on positions in the United Arab Emirates and Jordan that it claimed belonged to US forces. Tehran said the attacks were retaliation for an operation it said had been carried out by the United States and Israel near Lark Island.
The United Arab Emirates denied claims that an air base in the country had been hit by missiles and said it had intercepted an Iranian drone. The Jordanian army also announced that eight missiles had been intercepted and destroyed, without specifying their origin or target.
Iran's Islamic Revolutionary Guard Corps said on Sunday that the US military attack on Lark Island had caused deaths and injuries, including among civilians, and signaled that retaliation would follow.
US-Iran talks had previously stalled
According to Iran, attacks by the United States and Israel on Iran on February 28 resulted in the deaths of more than 3,000 people. Tehran said US and Israeli citizens were killed in the attacks it carried out in response.
Washington and Tehran began negotiations after signing a memorandum of understanding on June 18. The talks were disrupted by a dispute over maritime traffic in the Strait of Hormuz, which is of strategic importance for energy and goods shipments.
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