Gold Plunges Amid US-Iran Tensions and Rising Inflation Fears
The ongoing US-Iran tensions have taken a toll on global markets, with gold declining sharply amid escalating hostilities. On Tuesday, the US launched a new wave of attacks on southern Iran, prompting retaliatory Iranian strikes on US bases in Bahrain, Jordan, and Iraq.
The attacks, which marked the heaviest exchange of fire between the US and Iran in over a month, targeted Iranian air defense sites, radar systems, maritime assets, mine-laying capabilities, and communications infrastructure. The US President denied reports that the latest strikes were aimed at forcing Iran back to the negotiating table.
Iranian officials signaled further attacks, with Supreme Leader Mojtaba Khamenei warning of 'unforgettable lessons' for Washington. The conflict has pushed up energy prices, feeding investor fears about inflation and mounting government debt.