Iran denies negotiations with the US; gold prices decline for the tenth consecutive trading day

Investing.com - On Tuesday during Asian trading hours, gold prices declined for the tenth consecutive trading day after Iran denied negotiations with the United States, and U.S. President Donald Trump previously decided to delay further strikes on Iran’s energy infrastructure.

As of 20:38 Eastern Time (01:38 Beijing Time), spot gold fell 1.3% to $4,351.28 per ounce. U.S. gold futures declined 0.3% to $4,399.59.

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The U.S. decision to delay strikes on Iran helped calm broader markets and triggered a sharp decline in oil prices, which narrowed gold’s losses in the previous trading session.

Trump postponed the threat of bombing Iran’s power grid, stating he had “very good and productive” negotiations with unidentified Iranian officials.

However, Iranian Parliament Speaker Mohammad Bagher Ghalibaf said on social media that no such negotiations took place, creating uncertainty.

On Tuesday, gold continued to decline as investors also focused on macroeconomic outlooks, especially interest rate expectations.

Although gold traditionally acts as a safe-haven asset during geopolitical tensions, its performance has remained weak.

In recent trading sessions, this precious metal has been under continuous pressure as soaring energy prices have heightened concerns that inflation may stay elevated.

This has led markets to lower expectations for monetary easing policies, with investors increasingly betting that central banks, including the Federal Reserve, will maintain higher interest rates for a longer period.

Higher interest rates typically put pressure on gold, as this non-yielding asset becomes less attractive compared to interest-bearing instruments like government bonds.

In other precious metals, silver prices fell 1.5% to $68.08 per ounce, while platinum slightly declined 0.3% to $1,879.4 per ounce.

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