Trump Rejects Iran Peace Proposal, Gold Plunges to 4,670 per Ounce
Gold prices fell sharply in early Asian trading on Monday (May 11), as Bloomberg reported that the decline was triggered by US President Donald Trump's rejection of Iran's latest peace proposal to end the 10-week-long conflict that has blocked the Strait of Hormuz.
Bloomberg stated that Trump's move exacerbated inflation concerns as the weekend clashes in the Middle East threatened an already fragile ceasefire.
Spot gold was trading near $4,670 per ounce, having risen about 2% last week. The peace process suffered another setback after Trump called Iran's latest response to his proposal to end the conflict "completely unacceptable." This setback could keep inflation risks high and strengthen market expectations for interest rate hikes, thus putting pressure on non-yielding gold.
Gold prices just touched $4,670.04 per ounce, a drop of $45 on the day! $XAU/USD(XAUUSD.FOREX)$$Gold - main 2606(GCmain)$
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