(RTTNews) – Gold prices fell to $4,500 an ounce on Tuesday after US forces attacked missile launch sites and boats trying to plant mines in Iran, dashing hopes of an imminent peace deal.
Spot gold fell 1.2 percent to $4,516.60 an ounce, while US gold futures for August delivery were down 0.1 percent at $4,551.22.
The dollar index was flat, while Brent crude futures for August delivery jumped more than 3 percent to more than $96 a barrel after the US launched ‘self-defense strikes’ on Iranian missile launch sites and boats near the Strait of Hormuz, dimming prospects for an interim deal between Washington and Tehran.
Elsewhere, following Prime Minister Benjamin Netanyahu’s announcement that his country would step up its attacks on Hezbollah, Israeli forces have launched a wave of attacks against Hezbollah in the Bekaa Valley in Lebanon’s east and other parts of the country.
Defense forces across the Gulf are on high alert due to the increasing number of missile and drone attacks by Iran on the UAE, Kuwait and Bahrain.
US Secretary of State Marco Rubio said talks are ongoing to end the war in Iran and there is a lot of talk about specific language in the initial document.
In a post on Truth Social, US President Donald Trump said he expected Iran to hand over its enriched uranium to the United States for destruction, or destroy it in Iran with international witnesses.
Iran has publicly denied reports that it has agreed to transfer its enriched uranium reserves abroad, highlighting the delicate and uncertain nature of the ongoing talks.
In other geopolitical news, Russia has threatened to launch a new wave of “systematic attacks” targeting command centers, military sites and drone facilities in Kiev, while urging diplomats and foreign nationals to evacuate the Ukrainian capital.
The euro hit a one-week high against the dollar as traders bet on an interest rate hike by the European Central Bank (ECB).
ECB Executive Board member Isabelle Schnabel said today that the ECB should raise interest rates in June even if there is a quick resolution to the Middle East conflict.
“Even if the war ended today, huge damage has already been done to energy infrastructure and global supply chains,” he said in an interview published on the ECB’s website.
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