Gold prices fell toward $4,700 an ounce on Tuesday, marking their lowest level in about a week, pressured by a stronger US dollar as investors assessed uncertainty surrounding US–Iran negotiations and the Senate confirmation hearing for Federal Reserve Chair nominee Kevin Warsh. It remains unclear whether Iran will participate in a second round of talks with the US ahead of Wednesday’s ceasefire deadline, while the Strait of Hormuz remains largely closed. At the same time, climbing oil prices have revived inflation concerns, boosting both the dollar and US Treasury yields and putting additional pressure on bullion.
Adding to the cautious tone, Warsh proposed a new framework for the Federal Reserve to address persistent inflation but did not provide substantive details. Since the onset of the Iran conflict, gold has fallen more than 8%, as geopolitical risks have been counterbalanced by resilient US consumer spending and the Fed’s cautious policy stance.
