Gold declines to near $4,450 amid fading Iran peace hopes
Gold price (XAU/USD) tumbles to around $4,465 during the early Asian session on Wednesday. The precious metal extends the decline amid uncertainty surrounding the peace deal between the United States (US) and Iran.
Iran reportedly threatened to completely withdraw from peace talks on Monday over Israel's attacks in Lebanon. US President Donald Trump secured a renewed ceasefire between Israel and Hezbollah, going on to insist that talks with Iran remain active.
Meanwhile, US Secretary of State Marco Rubio said on Tuesday that the US will not remove sanctions on Iran in exchange for a full reopening of the Strait of Hormuz, adding that any sanctions relief is conditioned on Iran giving up enriched uranium.
“The optimism surrounding negotiations between the US and Iran aimed at ending the standoff in the Strait of Hormuz faded over the weekend,” said Ricardo Evangelista, ActivTrades analyst. “As a result, energy prices rebounded, reviving inflation concerns and reinforcing hawkish Federal Reserve expectations,” he added.
Traders brace for the US employment data for May, which is due later on Friday. The report could help sway the US Federal Reserve’s (Fed) policy path in the near term. The data are expected to show a gain of 85,000 jobs in May and no change in the current 4.3% Unemployment Rate. Any signs of weakening in the US labour market could weigh on the US Dollar (USD) and support the USD-denominated commodity price in the near term.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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