FX.co ★ Gold Pressured by Mideast Uncertainties

Gold slid toward $4,300 per ounce on Tuesday, remaining under pressure amid escalating tensions in the Middle East after Iran denied engaging in talks with the US to end the conflict. Tehran rejected President Donald Trump’s claim as an effort to sway financial markets and instead launched new attacks on US targets, while Israel persisted with strikes on Iran. On Monday, gold had mounted a sharp intraday rebound after Trump postponed planned US strikes on Iranian energy infrastructure and asserted that negotiations were in progress. However, the outcome of any potential talks and the prospects for reopening the Strait of Hormuz remain highly uncertain, keeping inflation risks elevated. Gold has fallen as much as 25% from its March peak as rising energy prices have stoked inflation concerns and reinforced expectations of further interest rate hikes.