- BIST10011,722-2.89%
- USD49.42+0.06%
- EUR55.41+0.20%
- GOLD4,178.40+0.20%
- INTEREST37.00%-1.00
- BITCOIN81,293-1.02%
- October 16, 202612°
- BIST10011,722-2.89%
- USD49.42+0.06%
- EUR55.41+0.20%
- GOLD4,178.40+0.20%
- INTEREST37.00%-1.00
- BITCOIN81,293-1.02%
- October 16, 202612°
Gold falls to a two-week low as US-Iran tensions mount
Spot gold fell 0.8% to $4,417.04 per ounce on Monday, reaching its lowest level in about two weeks. Military tensions between the United States and Iran, along with oil prices and interest-rate expectations, affected the precious metal.
The renewed escalation of military tensions between the United States and Iran pushed spot gold to its lowest level in about two weeks on Monday.
The precious metal fell 0.8% to $4,417.04 per ounce, its weakest level since August 19. During morning trading, the price moved between $4,396 and $4,472 per ounce, while the daily loss compared with the previous session's close ranged from 0.3% to 0.8%.
US gold futures also fell 1.4% to about $4,466.80.
Oil prices and interest-rate expectations weigh on gold
Developments in the region following the US attack on Lark Island near the Strait of Hormuz were seen as a factor behind the decline in gold. Following the attack, Iran launched missile and drone strikes against locations it identified as hosting US bases in Jordan and the United Arab Emirates.
The escalation in the region pushed oil prices up by about 4% in some trading, taking them above $90 a barrel. The move strengthened expectations that inflationary pressures could persist.
Federal Reserve Chair Kevin Warsh's indication that a rate hike might be necessary to ease price pressures also reduced gold's appeal. The precious metal, which provides no interest income, was hurt by expectations of higher interest rates.
Iran, the UAE and Jordan issue differing statements
Iran said on Monday morning that it had carried out missile and drone strikes against positions in the United Arab Emirates and Jordan that it claimed belonged to US forces. Tehran said the strikes were in response to an operation it attributed to 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, saying that an Iranian drone had been intercepted. The Jordanian military 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 a response would follow.
Washington-Tehran talks disrupted
According to Iran, attacks by the United States and Israel against Iran on February 28 resulted in the deaths of more than 3,000 people. Tehran said that US and Israeli citizens had been killed in the attacks it carried out in response.
Washington and Tehran had begun negotiations after signing a memorandum of understanding on June 18. A dispute over maritime traffic in the Strait of Hormuz, which is strategically important for energy and goods shipments, disrupted the talks.
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