Global gold prices remain volatile after their worst weekly decline in over 40 years. The value of the metal hovers around $4,500 per ounce after losing almost 11% in the previous week. This is reported by Bloomberg, writes UNN.
Details
The market is reacting to the escalation of the conflict between the US and Iran, which increases uncertainty and affects global financial expectations.
Rising oil prices increase inflationary risks and reduce the likelihood of central banks cutting rates. This negatively affects gold, which does not yield interest income.
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Against this background, the metal has been falling for eight consecutive trading sessions, which was a record losing streak.
Markets react to US and Iran ultimatums
The situation was exacerbated by Donald Trump's ultimatum regarding the opening of the Strait of Hormuz. In response, Iran threatened to completely block the route and attack energy infrastructure.
Despite this, at the beginning of the week, gold partially recovered its losses and traded with a slight increase, indicating high market volatility.
Spot gold rose 0.3% to $4,506.57 an ounce at 6:16 a.m. in Singapore, after falling earlier in trading. Silver remained stable at $67.95. Platinum and palladium rose slightly. The Bloomberg Dollar Spot Index , an indicator of the US currency, fell 0.5% last week.
Gold stabilizes after falling amid Fed signals on inflation19.03.26, 03:55 • 6226 views
