Gold experienced a continued decline, trading around $4,100 an ounce in early trading, following a 1.4% drop in the prior session. This movement occurred as the United States launched "powerful strikes" against Iran, in retaliation for Iranian attacks on shipping within the strategically important Strait of Hormuz.
The US Central Command confirmed these strikes, which took place just hours after Washington revoked a waiver that had previously allowed Tehran to sell oil globally. This escalation of tensions between the US and Iran has further jeopardized an existing interim deal aimed at ending the ongoing conflict.
The renewed hostilities are contributing to increased global inflationary pressures and raising the likelihood of interest-rate hikes. Crude oil prices also advanced in response to these developments, indicating broader market concerns about energy supply and stability.
