Gold prices retreated toward $3,900 per ounce on Tuesday, giving back gains from the previous session as oil prices rebounded following reports of a US strike on Iran’s Qeshm Island, stoking fears of renewed inflationary pressures. Sentiment was further tempered ahead of the US midterm elections, which will decide control of both chambers of Congress; the prospect of a Democratic takeover added to market uncertainty.
At the same time, renewed selling in technology and artificial intelligence stocks weighed on gold, as broad-based liquidations across financial markets continued to pressure precious metals. Investors also closely monitored US-Iran negotiations for any sign of diplomatic progress. An Iranian spokesperson said “the ball is in the US court” regarding a possible deal to end the conflict, while President Donald Trump wrote on social media that Iran was eager to reach a settlement as soon as possible.
