Investing.com– Gold prices fell in Asian trade on Tuesday after fresh U.S. strikes on Iran dampened recent optimism over a potential peace deal between the two sides.
The dollar steadied, while oil prices rebounded on Tuesday following news of the U.S. attacks, pressuring gold prices and cutting short a recent rally in bullion.
fell 0.8% to $4,535.17 an ounce by 21:37 ET (01:37 GMT), while fell 0.8% to $4,568.67/oz.
Other precious metals also retreated, with down 2.1% to $76.4495/oz, while fell 0.6% to $1,955.02/oz.
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Gold and precious metals had gained some ground in recent sessions, especially after several reports showed the U.S. and Iran were close to a framework deal to reopen the Strait of Hormuz.
But reports on Monday evening showed the U.S. had carried out fresh military strikes against Iran, denting the prospect of a peace deal between the two countries.
U.S. media reported the military struck missile launch sites and mine-laying boats in southern Iran,
The development helped the dollar steady from recent losses, and also saw oil prices rebound from a week of declines.
The rebound in oil left markets fretting over the inflationary impact of the Iran war. Fears that energy-driven inflation will spur more hawkish global central banks were a major weight on gold prices this year.
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