Gold Futures

Gold Gives Up All Its Gains This Year as Rising Oil Prices Heighten Inflation Worries

Gold fell to a fresh five-month low early on Monday, falling for a second day as oil prices rose again after Iran and Israel traded strikes on the weekend, heightening concerns central banks will need to raise interest rates to combat the inflation that has followed higher energy costs.Gold for June delivery was last seen down US$8.20 to US$4,357.10, the lowest since Jan. 2.The drop comes as Iran on the weekend launched strikes on Israel to deter Israel's occupation of southern Lebanon and end its attacks on Beirut in its war on the Iran-backed Hezbollah militant group. The renewed hostilities are testing the two-month ceasefire between Iran and the United States, as talks between the two countries are stalled due to Iran's insistence Israel first must end its war in Lebanon. The fighting is lowering hopes for a peace deal that would reopen the Strait of Hormuz, freeing up the oil exports from Persian Gulf nations that supplied 20% of daily oil demand and ending the largest-ever supply shock and boosted inflation.May U.S. consumer price data will be released on Wednesday, with the consensus estimate expecting the Consumer Price Index to rise to 4.2% annualized from 3.8% in April."Gold ... extended Friday's selloff as renewed Israeli strikes on Iran pushed oil prices higher, reigniting inflation concerns. On Friday, an already weakened precious metals market tumbled after a stronger-than-expected US jobs report reinforced expectations that the Federal Reserve may need to hike rates in 2026.," Saxo Bank wrote.The drop comes even as the dollar moved lower, with the ICE dollar index last seen down 0.12 points to 99.95, falling off the highest since March 30. Treasury yields were mostly steady, with the yield on the U.S. two-year note last seen unchanged at 4.147%, while the 10-year note was paying 4.532%, up 0.1 basis points.

Update: Gold Falls as the Dollar and Yields Rise After an Unexpected Surge in May U.S. Employment

(Updates prices.)Gold traded sharply lower midafternoon Friday, falling to the lowest this year as the dollar and yields climbed as the United States reported an unexpected jump in May employment.Gold for July delivery was last seen down US$137.20 to US$4.367.80 per ounce, the lowest since Jan.2.The U.S. Bureau of Labor Statistics reported the country added 172,000 jobs in May, up from 115,000 a month earlier and well ahead of expectations for a rise of 80,000 new positions according to Marketwatch. The unemployment rate held steady at 4.3%.Gold has been pressured by the rising oil prices that have followed the U.S. war on Iran, with buyers concerned central banks will need to raise interest rates to combat rising energy inflation. Traders have turned away from gold as a store of value amid the inflation worries, preferring the dollar as a hedge against a rise in rates.The dollar rose off overnight lows following the data, with the ICE dollar index last seen up 0.63 points to 100.04 after earlier touching 99.16. Treasury yields were sharply higher, with the yield on the U.S. two-year note last seen up 12.7 basis points to 4.176%, while the 10-year note was paying 4.546%, up 6.5 points.

Gold Falls as the Dollar and Yields Rise After an Unexpected Surge in May U.S. Employment

Gold traded lower early on Friday as the dollar and yields climbed as the United States reported an unexpected jump in May employment.Gold for July delivery was last seen down US$28.50 to US$4.476.50 per ounce.The U.S. Bureau of Labor Statistics reported the country added 172,000 jobs in May, up from 115,000 a month earlier and well ahead of expectations for a rise of 80,000 new positions according to Marketwatch. The unemployment rate held steady at 4.3%.Gold has been pressured by the rising oil prices that have followed the U.S. war on Iran, with buyers concerned central banks will need to raise interest rates to combat rising energy inflation. Traders have turned away from gold as a store of value amid the inflation worries, preferring the dollar as a hedge should central banks raise interest rates to slow rising prices.The dollar rose off overnight lows following the data, with the ICE dollar index last seen up 0.1 points to 99.51 after earlier touching 99.16. Treasury yields were sharply higher, with the yield on the U.S. two-year note last seen up 10.2 basis points to 4.151%, while the 10-year note was paying 4.539%, up 5.8 points.

Update: Gold Trading Higher as the Dollar and Yields Fall as Israel and Lebanon Agree to a Ceasefire

(Updates prices.)Gold prices were higher midafternoon on Thursday as the dollar and treasury yields weakened as oil prices dropped after Israel and Lebanon reached a ceasefire agreement, lowering the inflation fears that have kept the precious mental rangebound since the start of the war between the United States and Iran.Gold for July delivery was last seen up US$40.50 to US$4,507.40 per ounce.The rise comes as Israel and Lebanon agreed to a ceasefire, one of Iran's key demands for agreeing for a deal of its own to end the war with the United States and reopen the Strait of Hormuz. The rise in oil prices that has followed the start of the war has boosted inflation, raising worries central banks will need to hike interest rates, bearish for gold since it pays no interest. However oil traded sharply lower Thursday following the ceasefire agreement."Gold fell to test its 200-day moving average once again on Wednesday as higher oil prices kept inflation concerns elevated following renewed tensions in the Middle East. Those losses were reversed in early trading on Thursday after Israel and Lebanon announced a conditional ceasefire. Overall, gold remains rangebound, with steady central bank demand being offset by ETF outflows and short-term momentum traders positioning for a deeper correction," Saxo Bank noted.The dollar fell off a two-month high as oil prices weakened, with the ICE dollar index last seen down 0.15 points to 99.39. Treasury yields also fell, with the U.S. two-year note last seen paying 4.053%, down 3.3 basis points, while the yield on the 10-year note was down 2.7 points to 4.473%.

Gold Trading Higher as the Dollar and Yields Fall as Israel and Lebanon Agree to a Ceasefire

Gold prices rose early on Thursday as the dollar and treasury yields weakened as oil prices dropped after Israel and Lebanon reached a ceasefire agreement, lowering the inflation fears that have kept the precious mental rangebound since the start of the war between the United States and Iran.Gold for July delivery was last seen up US$59.10 to US$4,526.00 per ounce.The rise comes as Israel and Lebanon agreed to a ceasefire, one of Iran's key demands for agreeing for a deal of its own to end the war with the United States and reopen the Strait of Hormuz. The rise in oil prices that has followed the start of the war has boosted inflation, raising worries central banks will need to hike interest rates, bearish for gold since it pays no interest. However oil traded sharply lower Thursday following the ceasefire agreement."Gold fell to test its 200-day moving average once again on Wednesday as higher oil prices kept inflation concerns elevated following renewed tensions in the Middle East. Those losses were reversed in early trading on Thursday after Israel and Lebanon announced a conditional ceasefire. Overall, gold remains rangebound, with steady central bank demand being offset by ETF outflows and short-term momentum traders positioning for a deeper correction," Saxo Bank noted.The dollar fell off a two-month high as oil prices weakened, with the ICE dollar index last seen down 0.3 points to 99.23. Treasury yields also fell, with the U.S. two-year note last seen paying 4.043%, down 4.3 basis points, while the yield on the 10-year note was down 4.5 points to 4.455%.

Update: Gold Falls as the Dollar Rises to a Two-Month High as the U.S. and Iran Trade Strikes

(Updates prices.)Gold traded lower midafternoon on Wednesday as the dollar rose to a two-month high after oil prices rose following fresh hostilities between the United States and Iran, renewing worries energy inflation will force central banks to raise interest rates.Gold for July delivery was last seen down US$53.8 to US$4,466.10 per ounce.The drop comes as oil prices rose for a third day on fresh hostilities between Iran and the United States. The Wall Street Journal reported Iran launched attacks on Kuwait and Bahrain and the United States attacked Iran's military ground control stations on Qeshm Island and struck at an empty oil tanker attempting to run its blockade of Iranian ports and load oil at Iran's Kharg Island."Gold trades lower as the market continues to take its cues from oil, with the latest rise in crude prices weighing on bullion through its inflationary impact. Higher energy costs have underpinned bond yields and the dollar while reducing expectations for Federal Reserve rate cuts," Saxo Bank noted.The dollar rose to the highest since April 7, with the ICE dollar index last seen up 0.31 points to 99.48. Treasury yields also rose, with the U.S. two-year note last seen up 4.0 basis points to 4.094%, while the 10-year note was paying 4.496%, up 5.0 points.

Gold Rises as the Dollar Rises to a Two-Month High as the U.S. and Iran Trade Strikes

Gold prices fell early on Wednesday as the dollar rose to a two-month high after oil prices rose following fresh hostilities between the United States and Iran, renewing worries energy inflation will force central banks to raise interest rates.Gold for July delivery was last seen down US$32.30 to US$4,487.60 per ounce.The drop comes as oil prices rose for a third day on fresh hostilities between Iran and the United States. The Wall Street Journal reported Iran launched attacks on Kuwait and Bahrain and the United States attacked Iran's military ground control stations on Qeshm Island and struck at an empty oil tanker attempting to run its blockade of Iranian ports and load oil at Iran's Kharg Island."Gold trades lower as the market continues to take its cues from oil, with the latest rise in crude prices weighing on bullion through its inflationary impact. Higher energy costs have underpinned bond yields and the dollar while reducing expectations for Federal Reserve rate cuts," Saxo Bank noted.The dollar rose to the highest since April 7, with the ICE dollar index last seen up 0.26 points to 99.48. Treasury yields also rose, with the U.S. two-year note last seen up 4.4 basis points to 4.094%.

Update: Gold Trading Higher Following Reports Peace Negotiations Between Iran and the U.S. are Continuing

(Updates prices.)Gold rose midafternoon Tuesday but fell back from early highs as the dollar rose.Gold for July delivery was last seen up US$14.50 to US$4,520.80 per ounce, after earlier touching US$4,571.30.The rise comes as Reuters on Tuesday, citing Iranian media, reported Iran is considering a fresh U.S. proposal to end the war and reopen the critical Strait of Hormuz, while U.S. President Trump said on Monday talks were continuing. This is a day after the two sides traded strikes and Iran was said it would not continue talks as long as Israel continued to attack its Hezbollah allies in Lebanon.Hope for an end to the war is lowering oil prices and easing fears over the rise in inflation that has followed the closure of the Strait since the war began on Feb. 28, blocking the exports from Persian Gulf nations that supplied a fifth of daily oil demand. Traders have turned away from gold as a store of value amid the inflation worries, preferring the dollar as a hedge should central banks raise interest rates to slow rising prices."Gold continues to take its cues from the oil market given crude's influence on inflation expectations and, by extension, interest rates, bond yields and the dollar," Saxo Bank noted.The dollar was higher, with the ICE dollar index last seen up 0.06 points to 99.26. Treasury yields rose, with the U.S. two-year note last seen paying 4.053%, up 1.8 basis points, while the yield on the 10-year note was up 0.5 points to 4.458%.

Gold Trading Higher Following Reports Peace Negotiations Between Iran and the U.S. are Continuing

Gold rose early Tuesday as the dollar weakened following reports Iran is reviewing a fresh U.S. offer to end their war and reopen the Strait of Hormuz.Gold for July delivery was last seen up $55.90 to US$4,562.20 per ounce.The rise comes as Reuters on Tuesday, in citing Iranian media, reported Iran is considering a fresh U.S. proposal to end the war and reopen the critical Strait of Hormuz, while U.S. President Trump said on Monday talks were continuing. This is a day after the two sides traded strikes and Iran was said it would not continue talks as long as Israel continued to attack its Hezbollah allies in Lebanon.Hope for an end to the war is lowering oil prices and easing fears over the rise in inflation that has followed the closure of the Strait since the war began on Feb. 28, blocking the exports from Persian Gulf nations that supplied a fifth of daily oil demand. Traders have turned away from gold as a store of value amid the inflation worries, preferring the dollar as a hedge should central banks raise interest rates to slow rising prices."Gold continues to take its cues from the oil market given crude's influence on inflation expectations and, by extension, interest rates, bond yields and the dollar," Saxo Bank noted.The dollar fell early, with the ICE dollar index last seen down 0.13 points to 99.07. Treasury yields were steady, with the U.S. two-year note last seen paying 4.037%, up 0.4 basis points, while the yield on the 10-year note was down 0.9 points to 4.444%.

Update: Gold Falls Off a Two-Week High as Oil Rises as the U.S. and Iran Trade Strikes

(Updates prices.)Gold fell off a two-week high midafternoon Monday as the dollar rose after fresh attacks between the United States and Iran boosted oil prices, reviving inflation worries.Gold for July delivery was last seen down US$81.70 to US$4,511.30 per ounce, after rising to the highest since May 14 on Friday.The drop comes after the United States over the weekend attacked Iranian military sites, while The Guardian reported Iran on Monday targeted a U.S. military base in Kuwait and Iran said it will discontinue negotiations until Israel ends its war on Lebanon, pushing oil prices up from a six-week low.The hostilities have dimmed prospects for a end to the war that began on Feb. 28, when the U.S. and Israel launched strikes on Iran, which responded by blockading the Strait of Hormuz, the narrow waterway that is the chokepoint for 20% of daily oil demand supplied by Persian Gulf countries. The rise in oil since the start of the war has raised inflation and boosted the dollar on worries central banks will need to hike interest rates to slow rising prices."Gold trades lower following last week's rebound from key support as oil prices recovered and progress in US-Iran peace talks remained slow. The price action highlights the market's ongoing struggle to balance the inflationary implications of elevated energy prices -- which tend to support the dollar and bond yields -- against longer-term bullish drivers such as de-dollarisation, fiscal debt concerns, and persistent central bank demand," Saxo Bank wrote.The dollar was higher early, with the ICE dollar index last seen up 0.26 points to 99.17. Treasury yields were also higher, with the U.S. two-year note last seen paying 4.055%, up 4.5 basis points, while the yield on the 10-year note was up 2.8 points to 4.471%.

Gold Falls Off a Two-Week High as Oil Rises as the U.S. and Iran Trade Strikes

Gold fell off a two-week high early Monday as the dollar rose after fresh attacks between the United States and Iran boosted oil prices, reviving inflation worries.Gold for July delivery was last seen down $62.90 to US$4,530.10 per ounce, after rising to the highest since May 14 on Friday.The drop comes after the United States over the weekend attacked Iranian military sites, while The Guardian reported Iran on Monday targeted a U.S. military base in Kuwait, pushing oil prices up from a six-week low.The hostilities have dimmed prospects for a end to the war that began on Feb. 28, when the U.S. and Israel launched strikes on Iran, which responded by blockading the Strait of Hormuz, the narrow waterway that is the chokepoint for 20% of daily oil demand supplied by Persian Gulf countries. The rise in oil since the start of the war has raised inflation and boosted the dollar on worries central banks will need to hike interest rates to slow rising prices."Gold trades lower following last week's rebound from key support as oil prices recovered and progress in US-Iran peace talks remained slow. The price action highlights the market's ongoing struggle to balance the inflationary implications of elevated energy prices -- which tend to support the dollar and bond yields -- against longer-term bullish drivers such as de-dollarisation, fiscal debt concerns, and persistent central bank demand," Saxo Bank wrote.The dollar was higher early, with the ICE dollar index last seen up 0.15 points to 99.06. Treasury yields were also higher, with the U.S. two-year note last seen paying 4.037%, up 2.7 basis points, while the yield on the 10-year note was up 1.2 points to 4.455%.

Update: Gold Trading Higher Again on Expectations the U.S. and Iran are Near a Peace Deal

(Updates prices.)Gold traded higher for a second day midafternoon on Friday as the dollar weakened on expectations the U.S. war on Iran is nearing an end, pushing oil prices lower and easing the inflation worries that have pushed up the currency.Gold for July delivery was last seen up US$60.70 to US$4,593.10 per ounce.The Wall Street Journal reported U.S. Treasury Secretary Scott Bessent said the Trump Administration is near a deal to end the war, which enters its fourth month today. The paper said President Trump is pressing Iran for a commitment to surrender its stocks of enriched uranium and fully reopen the Strait of Hormuz. Thursday reports that the two countries have extended a ceasefire for 60 days, are also pushing oil prices lower and easing worries energy inflation will force central banks to raise interest rates."The easing of energy-driven inflation concerns helped push bond yields and the dollar lower, providing support to bullion," Saxo Bank noted.The dollar fell, with the ICE dollar index last seen down 0.13 points to 99.06. Treasury yields eased, with the U.S. two-year not last seen paying 4.01%, down 2.1 basis points, while the yield on the 10-year note was unchanged at 4.448%.

Gold Trading Higher Again on Expectations the U.S. and Iran are Near a Peace Deal

Gold traded higher for a second day early on Friday as the dollar and yields steadied on expectations the U.S. war on Iran is nearing an end, pushing oil price lower and easing the inflation worries that have pushed up the dollar.Gold for July delivery was last seen up US$18.30 to US$4,550.70 per ounce.The Wall Street Journal reported U.S. Treasury Secretary Scott Bessent said the Trump Administration is near a deal to end the war, which enters its fourth month today. The paper said President Trump is pressing Iran for a commitment to surrender its stocks of enriched uranium and fully reopen the Strait of Hormuz. Thursday reports that the two countries have extended a ceasefire for 60 days, are also pushing oil prices lower and easing worries energy inflation will force central banks to raise interest rates."The easing of energy-driven inflation concerns helped push bond yields and the dollar lower, providing support to bullion," Saxo Bank noted.Still, the dollar edged up early, with the ICE dollar index last seen up 0.05 points to 99.06. Treasury yields eased, with the U.S. two-year not last seen paying 4.025%, down 0.8 basis points, while the yield on the 10-year note was down 0.4 points to 4.444%.

Gold Was Holding Above US$4,500 as Iran Peace Deal Hopes Ease Inflation Fears

Update: Gold Rises Midafternoon on Reports Iran and the U.S. Agreed to Extend Their Ceasefire

(Updates prices.)Gold was higher midafternoon on Thursday, rising off early lows as the dollar and yields fell after reports the United States and Iran on agreed to extend a ceasefire for 60 days. lowering oil prices and easing inflation worries even a key U.S. inflation measure rose in April.Gold for July delivery was last seen up US$52.50 to US$4,4,534.00 per ounce, after earlier touching US$4,395.60.The drop comes as oil prices also gave up early gains after Axios reported the two countries will extend their ceasefire agreement. The potential deal comes despite earlier reports U.S. forces attacked a drone-control base in Iran and shot down Iranian drones, while Kuwait intercepted an Iranian missile and Iran attacked commercial shipping in the Persian Gulf.The U.S. Bureau of Economic Analysis on Thursday reported the Personal Consumption Expenditures (PCE) Index, the Federal Reserve's preferred inflation measure, rose 3.8% annualized in April, up from 3.5% in March and matching expectations, according to Marketwatch. Core PCE, excluding volatile food and energy, rose at a 3.3% annual pace, again matching expectations and up from 3.2% a month earlier.The Bureau also released its second revision to its estimate for first-quarter gross domestic product growth, cutting its estimate to 1.6% from 2.0%. The agency was expected to maintain its 2.0% estimate, according to Marketwatch.The dollar was lower, with the ICE dollar index last seen down 0.21 points to 98.99. Treasury yields fell, with the U.S. two-year note last seen paying 4.031%, down 1.0 basis points, while the yield on the 10-year note was down 3.2 points to 4.456%.

Gold Falls to a Two-Month Low on Inflation Worries as Oil Prices Rise and the U.S. Reports Inflation Jump in April

Gold traded at a two-month low early on Thursday on renewed inflation worries as oil prices rose on renewed fighting between Iran and the United States, while a key U.S. inflation measure rose in April.Gold for July delivery was last seen down US$70.40 to US$4,411.10, the lowest since March 26.The drop comes as oil prices rose off a month low on fresh hostilities in the Persian Gulf. The Wall Street Journal reported U.S. forces attacked a drone-control base in Iran and shot down Iranian drones, while Kuwait intercepted an Iranian missile and Iran attacked commercial shipping in the Persian Gulf."Gold fell to a two-month low as US Treasuries sold off and the dollar strengthened following a fresh surge in crude oil prices, fuelling concerns that tight energy markets will continue to exert upward pressure on inflation," Saxo Bank noted.The U.S. Bureau of Economic Analysis on Thursday reported the Personal Consumption Expenditures (PCE) Index, the Federal Reserve's preferred inflation measure, rose 3.8% annualized in April, up from 3.5% in March and matching expectations, according to Marketwatch. Core PCE, excluding volatile food and energy, rose at a 3.3% annual pace, again matching expectations and up from 3.2% a month earlier.The Bureau also released its second revision to its estimate for first-quarter gross domestic product growth, cutting its estimate to 1.6% from 2.0%. The agency was expected to maintain its 2.0% estimate, according to Marketwatch.The dollar edged down following the data, with the ICE dollar index last seen down 0.02 points to 99.19. Treasury yileds were mixed, with the U.S. two-year note last seen paying 4.053%, up 1.2 basis points, while the yield on the 10-year note was down 0.4 points to 4.485%.

Update: Gold Trading at a Two-Month Low Even as Falling Oil Prices Ease Inflation Concerns

(Updates prices.)Gold fell to a two-month low early on Wednesday, even as the dollar dipped as oil prices weakened ahead of an expected deal to end the war on Iran, easing inflation worries.Gold for July delivery was last seen down US$52.6 to US$4,482.40 per ounce, the lowest since March 26.The precious metal has remained well below its Jan. 28 record high as investors turned to the dollar as oil prices surged after the United States and Israel attacked Iran, which responded by blocking the Strait of Hormuz, the chokepoint for a fifth of daily oil demand supplied by Persian Gulf nations.However oil prices have retreated from four-year highs touched last month on expectations Iran and the United States will soon end hostilities amid talks in Qatar and reopen the Strait, easing the inflation worries that have supported the dollar and pushed up treasury yields, both bearish for gold."Gold fell alongside US bond yields on Tuesday as the prospect of a Middle East peace deal weighed on oil prices, thereby easing inflation concerns. In addition, a powerful global equity rally, led by chipmakers, has reduced near-term demand for defensive assets such as gold," Saxo Bank noted.The dollar edged higher, with the ICE dollar index last seen up 0.08 points to 98.24. Treasury yields edged down, with the U.S. two-year note last seen paying 4.045%, down 0.1 basis points, while the yield on the 10-year note was down 0.4 points to 4.489%.

Gold Trading at a Two-Month Low Even as Falling Oil Prices Ease Inflation Concerns

Gold fell to a two-month low early on Monday, even as the dollar dipped as oil prices weakened ahead of an expected deal to end the war on Iran, easing inflation worries.Gold for July delivery was last seen down US$47.80 to US$4,487.20 per ounce, the lowest since March 26.The precious metal has remained well below its Jan. 28 record high as investors turned to the dollar as oil prices surged after the United States and Israel attacked Iran, which responded by blocking the Strait of Hormuz, the chokepoint for a fifth of daily oil demand supplied by Persian Gulf nations.However oil prices have retreated from four-year highs touched last month on expectations Iran and the United States will soon end hostilities amid talks in Qatar and reopen the Strait, easing the inflation worries that have supported the dollar and pushed up treasury yields, both bearish for gold."Gold fell alongside US bond yields on Tuesday as the prospect of a Middle East peace deal weighed on oil prices, thereby easing inflation concerns. In addition, a powerful global equity rally, led by chipmakers, has reduced near-term demand for defensive assets such as gold," Saxo Bank noted.The dollar was lower early, with the ICE dollar index last seen down 0.18 points to 98.99. Treasury yields edged down, with the U.S. two-year note last seen paying 4.041%, down 0.5 basis points, while the yield on the 10-year note was down 2.3 points to 4.47%.

Update: Gold Edges Lower Amid Uncertainty Around Progress of Peace Talks In the Middle East

(Updates prices.)Gold edged lower midafternoon Tuesday even as the dollar and yields fell as fresh U.S. strikes on Iran heightened concerns over the progress of peace talks between the two countries.Gold for July delivery was last seen down US$16.90 to US$4,539.50 per ounce.While peace talks between Iran and the United States are underway, the United States on Monday launched attacks on what it said were missile-launching sites in Iran.The strikes come as the two countries continue talks to end the three-month war and reopen the Strait, which was the chokepoint for 20% of daily oil demand from Persian Gulf countries. Iran's blockade of the Strait following the Feb. 28 start to the war began the largest-ever oil supply shock and pushed up oil prices by more than half.The rise in inflation that followed the hike in energy prices has pushed up inflation, raising concerns central banks will need to raise interest rates, bearish for precious metals since they pay no interest."Gold and silver continue to take their cues from crude oil because of its influence on inflation expectations, interest-rate outlooks, bond yields, and the dollar. After rallying on Monday alongside the drop in oil prices, both metals trade softer today as renewed US strikes near the Strait reduced optimism surrounding peace negotiations," Saxo Bank noted.The dollar fell, with the ICE dollar index last seen down 0.04 points to 99.2. Treasury yields also fell, with the yield on the U.S. two-year note was down 6.2 basis points to 4.07%, while the 10-year note was paying 4.508%, down 5.5 points.

Gold Edges Lower Amid Uncertainty Around Progress of Peace Talks In the Middle East

Gold edged lower early Tuesday even as the U.S. dollar and yields fell as fresh U.S. strikes on Iran heightened concerns over the progress of peace talks between the two countries.Gold for July delivery was last seen down $14.00 to US$4,542.40 per ounce.While peace talks between Iran and the United States are underway, the United States on Monday launched attacks on what it said were missile-launching sites in Iran.The strikes come as the two countries continue talks to end the three-month war and reopen the Strait, which was the chokepoint for 20% of daily oil demand from Persian Gulf countries. Iran's blockade of the Strait following the Feb. 28 start to the war began the largest-ever oil supply shock and pushed up oil prices by more than half.The rise in inflation that followed the hike in energy prices has pushed up inflation, raising concerns central banks will need to raise interest rates, bearish for precious metals since they pay no interest."Gold and silver continue to take their cues from crude oil because of its influence on inflation expectations, interest-rate outlooks, bond yields, and the dollar. After rallying on Monday alongside the drop in oil prices, both metals trade softer today as renewed US strikes near the Strait reduced optimism surrounding peace negotiations," Saxo Bank noted.The dollar fell early, with the ICE dollar index last seen down 0.13 points to 99.11. Treasury yields also fell, with the yield on the U.S. two-year note was down 7.0 basis points to 4.062%, while the 10-year note was paying 4.49%, down 7.3 points.