Commodities
US-Iran Tensions Spark Gold Price Plunge to Two-Week Lows
A recent escalation of tensions between the United States and Iran has sent gold prices plummeting to two-week lows. The US launched airstrikes on Iranian targets, fueling speculation about mounting inflationary pressures that could lead to higher interest rates.
The yield on the 10-year US Treasury bond surged to its highest since January 2025, currently at around 4.79%. This marked a significant increase from previous levels, which may have contributed to the decline in gold prices.
Crude oil prices soared following the news, as investors anticipated potential disruptions to global supply chains. The US Dollar accelerated its advance against precious metals like gold, exacerbating the downward pressure on XAU/USD.