Gold Under Pressure as US-Iran Conflict Escalates and Oil Prices Near $100
Gold futures traded near their previous session's lows on Tuesday as the US-Iran conflict escalated, while oil prices extended gains to over $97 a barrel. The Japanese yen rallied sharply against the dollar, with the Bank of Japan seen raising interest rates.
The move has weakened the dollar, making dollar-priced bullion cheaper for buyers using other currencies. Gold found support from the currency move despite remaining in a relatively narrow range since rebounding from its floor near $4,000 in July.
Oil prices have been driven up by concerns over further disruption to Middle East energy supplies after Iran warned that oil and gas infrastructure across the Gulf could be targeted in retaliation for attacks on its assets. The Strait of Hormuz remains a key focus for oil markets, with Iran introducing a new restricted zone in the Gulf and an alternative shipping corridor.