Gold is down by 2.04%

Gold prices fell about 2% to around $4,400 an ounce on Wednesday, the lowest level in nearly two months, as declining oil prices helped ease fears of another inflation spike. Developments in the Middle East remained in focus, with traders growing increasingly hopeful that the US and Iran could soon reach an agreement to end the conflict and reopen the Strait of Hormuz. The optimism persisted despite mixed signals from both Washington and Tehran, as well as fresh strikes earlier this week. Iranian state television reported details of an unofficial draft memorandum between Tehran and Washington, under which the two countries would restore traffic flows through the Strait of Hormuz. However, the White House later denied the report. Gold stands nearly 15% below the levels seen at the start of the conflict, as concerns over an energy-driven inflation shock reinforced expectations that major central banks may keep monetary policy tighter for longer.

Gold decreased 2.04% to 4418.26 USD/t.oz

Gold slipped below $4,500 an ounce on Wednesday, remaining under pressure as investors were cautiously optimistic that the US and Iran could still secure a peace agreement despite renewed tensions in the Middle East. President Donald Trump said negotiations to extend a ceasefire and reopen the Strait of Hormuz are continuing, while US Secretary of State Marco Rubio warned that any final agreement may still take several days to complete. At the same time, the US military said it carried out self-defense strikes in southern Iran, while Iran’s Revolutionary Guard claimed it fired at an F-35 fighter jet and multiple drones after they allegedly entered Iranian airspace. Even so, gold prices remain nearly 15% below levels seen at the start of the conflict, as concerns over an energy-driven inflation shock strengthened expectations that major central banks may keep monetary policy tighter for longer.