Gold prices creep lower as as Iran impasse, rate uncertainty weigh

Gold prices fell slightly in Asian trade on Wednesday as markets remained on edge over the inflationary impact of the Iran war, even as U.S. officials flagged some progress in peace talks.

Spot gold fell 0.3% to $4,468.64 an ounce by 01:08 ET (05:08 GMT), while gold futures fell 0.3% to $4,470/95/oz.

Gold remains under pressure as inflation, rate concerns persist

Spot prices remained close to their weakest levels since early-April, with the yellow metal seeing little favor amid heightened concerns over rising inflation and interest rates.

A swathe of strong inflation readings from across the globe highlighted the inflationary impact of the Iran war in recent weeks, as global energy prices rose sharply.

This trend is expected to keep major global central banks largely hawkish in the coming months– a scenario that bodes poorly for gold. Higher rates increase the opportunity cost of investing in non-yielding assets like gold.

U.S. President Donald Trump and Vice President JD Vance on Tuesday flagged some progress towards a peace deal with Iran. But gold was little cheered by their comments, especially as oil supplies in the Middle East remained disrupted.

Gold was also spooked by a sharp increase in global bond yields over the past two weeks, as concerns over higher rates and inflation sparked a sharp selldown in government debt.