Gold prices decline as the market assesses Middle East tensions and awaits U.S. inflation data

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Golden Finance reports that on May 12th, gold prices declined on Tuesday ahead of the release of key U.S. inflation data, as the market weighs developments in the Middle East and interest rate expectations. Spot gold fell below $4,700 per ounce, down 0.74% for the day. As Iran rejected the U.S. proposal to end the conflict and insisted on a list of demands that U.S. President Trump described as “trash,” hopes for a peace agreement between the U.S. and Iran are gradually fading. Tastylive Global Macro Research Director Ilya Spivak said, “We have seen many central bank policy expectations shift toward a more hawkish stance. For the Federal Reserve, this means the possibility of rate cuts this year has disappeared.” “We are closely watching the potential impact of U.S. CPI data and whether there is stronger inflation momentum than expected.” Rising crude oil prices could push up inflation, thereby increasing the likelihood of rate hikes. (Jin10)

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