Gold Fluctuates in Turbulent Trading After New U.S. Strikes on Iran

SadaNews - Gold experienced sharp fluctuations after the United States completed a new round of strikes against Iran, which heightened risks in a war that has shaken global markets and fueled inflation fears.

Gold prices were recorded near $4,080 per ounce.

The U.S. military stated that it had completed strikes targeting sites inside Iran, following President Donald Trump's accusation that the Islamic Republic had disrupted negotiations on a temporary peace agreement. In response, Tehran announced it was closing the Strait of Hormuz to all ships.

The recent attacks confirmed Trump's increasing impatience regarding both parties' failure to reach an agreement. The war, which has entered its fourth month, has disrupted energy flows through the Strait of Hormuz, causing oil prices to rise and increasing the likelihood of interest rate hikes as central banks seek to curb inflation.

Gold Value Since the Beginning of the War

The inflation rate in the United States accelerated in May to its fastest pace in over three years, as the war led to rising energy prices, surpassing U.S. wage gains. The Consumer Price Index rose by 0.5% compared to April and 4.2% from the previous year, marking the largest increase since early 2023, according to Labor Department statistics released on Wednesday.

Gold is currently trading at about 22% below its level before the onset of the Iranian war at the end of February. The recent drop in the metal below its 200-day moving average has led to further selling, given the significance of this level for institutional investors.

Spot gold rose by 0.6% to $4,097.73 per ounce by 10:05 AM Singapore time, after losing more than 4% in the previous session. Silver rose by 1% to $63.96 per ounce. Both platinum and palladium increased. In contrast, the Bloomberg Dollar Spot Index, which measures the performance of the U.S. currency, decreased by 0.1%.

Silver Price

Silver prices were also recorded near $63 per ounce.