IAUM is trading at $41.24, down -3.58%, as higher oil prices following President Trump’s rejection of Iran’s Hormuz reopening proposal stoke inflation concerns and weigh on gold.
- Reuters reported spot gold down 2.7% as of 0627 GMT, with expectations of further Fed rate hikes adding pressure.
- Higher oil prices and elevated yields strengthened the higher-for-longer rate outlook, a headwind for non-yielding bullion.
- The geopolitical reversal appears to have turned prior hopes of a diplomatic resolution into renewed inflation and rate concerns.