(RTTNews) – Gold fell to $4,700 an ounce on Tuesday as the US dollar index climbed above 98.00 on rising geopolitical tensions linked to the Iran conflict.
Spot gold fell 0.7 percent to $4,702.72 an ounce as stalled US-Iran peace talks prompted continued closure of the Strait of Hormuz and investors expected a Federal Reserve rate cut this year. US gold futures were down 0.4 percent at $4,711.25.
The dollar gained for a second consecutive session, bonds remained under pressure and Brent crude prices climbed above $107 a barrel as investors monitored the latest developments in the Middle East war and awaited the release of the US consumer price index for April later in the day for directional cues.
Reports on U.S. producer prices, retail sales and industrial production due later in the week may also provide fresh information about the impact of recent increases in oil prices on inflation and consumer spending.
US President Donald Trump will visit Beijing this week for a summit with his counterpart Xi Jinping, with issues related to Iran, tariffs, artificial intelligence, Taiwan and the critical minerals deal on the agenda.
On the geopolitical front, President Trump said the fragile ceasefire between Washington and Tehran was “largely on life support”, raising new doubts over the possibility of a permanent cease-fire.
Trump called Iran’s response to his peace proposal a “piece of garbage” and said he “haven’t even finished reading it.”
Saudi Aramco officials have warned that even if the blockade of the Strait of Hormuz ends immediately, global oil markets may not fully stabilize until 2027.
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