Gold fell for a third day after the US launched fresh strikes against Iran, threatening to extend the war that’s roiled global markets and stoked inflation fears.
Bullion dropped as much as 0.9% to near $4,036 an ounce in early trading, having lost 4.4% in the previous session. The US military said it had fired missiles at “multiple” targets in Iran after President Donald Trump accused the Islamic Republic of dragging out talks on an interim peace deal. Tehran said its armed forces had the ability to strike back.
The latest attacks underscored Trump’s growing impatience that the two sides have failed to reach an agreement. Now in its fourth month, the war has disrupted energy flows via the Strait of Hormuz, causing oil prices to rise and raising the likelihood of interest-rate hikes as central banks try to keep inflation in check.
US inflation accelerated in May to the fastest pace in more than three years as the war pushed up energy prices, outstripping Americans’ pay gains. The consumer price index climbed 0.5% from April and 4.2% from a year earlier, the most since early 2023, according to Bureau of Labor Statistics data out Wednesday.
Gold is more than a fifth below where it was trading before the Iran war broke out at the end of February. The metal’s recent decline through its 200-day moving average — a widely watched measure of long-term momentum — has triggered additional selling as it’s seen as an important level watched by institutional investors.
Spot gold fell 0.9% to $4,036.66 an ounce at 6:25 a.m. in Singapore. Silver slid 1.4% to $62.46 an ounce. Platinum and palladium also retreated.
This article was generated from an automated news agency feed without modifications to text.
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