US-Iran Conflict Escalation Puts Pressure on Gold Prices
The US-Iran conflict has reached its 193rd day, putting pressure on gold prices. The precious metal is currently trading near the previous session's lows after a sharp rally against the dollar.
The escalating tensions between the two countries have raised concerns that President Trump may adopt a post-9/11 military strategy if the current economic warfare approach proves unsuccessful. This could lead to a further deterioration of the global economic situation, which is already facing stagflation fears and interest rate hikes by central banks, including the US Federal Reserve.
The yen has approached its strongest level of the year after extending a rally that began last week, driven by traders' expectations of a Bank of Japan interest rate hike. This has weakened the dollar, making gold cheaper for buyers using other currencies and providing support to the metal's price.