Spot gold prices fell during trading on Tuesday, May 26, as the US launched new strikes on Iran, leading to fluctuations in oil prices and increased concerns about inflation.
On Monday, US forces carried out attacks in southern Iran targeting boats that were attempting to plant mines and missile launch sites, in what were described as defensive operations.
Kelvin Wong, senior market analyst at OANDA, said in a note quoted by Reuters: “Although we have a peace agreement between America and Iran in its final stages, the damage to oil production facilities in the Middle East could effectively prevent oil flows from the Middle East to the rest of the world from returning to normal levels quickly.”
An informed official told Reuters on Monday that Iran's chief negotiator and foreign minister visited Doha for talks with Qatar's prime minister about a possible deal with the United States to end the three-month-long war.
For his part, US Secretary of State Marco Rubio stated that negotiating the wording of the agreement with Iran could take a few days, and warned that the Strait of Hormuz must be opened in any way possible.
In trading, the spot price of gold fell by about 0.9% to $4,530.58 per ounce, while the price of futures contracts for the yellow metal rose by about 0.2% to $4,530.40 per ounce.
