Gold Falls Below $4000 to $3943 Amid Mixed US-Iran Signals

Gold prices continued their decline, falling below $4000 per ounce amid mixed signals from US and Iranian authorities ahead of renewed discussions concerning the conflict that has intensified global inflationary pressures.

The precious metal dropped by as much as 1.8% to $3943 per ounce, marking its lowest level since November, following a nearly 2% decrease in the previous trading session.

Since the onset of the US war on Iran in late February, gold has lost approximately 25% of its value, breaching key technical thresholds including the 200-day moving average, which indicates long-term momentum.

Despite a retreat in oil prices after their sharp rise earlier in the conflict, forecasts still suggest central banks will maintain elevated interest rates for an extended period. This environment exerts downward pressure on non-yielding precious metals.

Additionally, a stronger US dollar has increased pressure on gold, which is priced in US currency, making it more expensive for many buyers. The dollar index has risen over 2% this month.