Gold Prices Stabilize as Iran-US Tensions and Inflation Fears Weigh on Market

Gold prices held steady at $4,495 on Wednesday following a 1.4% decline, as market volatility persists amid geopolitical instability and economic pressure. Clashes between Iranian and U.S. forces near the Strait of Hormuz have dampened hopes for a temporary peace agreement between the two nations. U.S. Secretary of State Marco Rubio indicated that a potential deal could be finalized within days, though geopolitical risks continue to influence investor sentiment. Simultaneously, rising inflation concerns have strengthened expectations that interest rates will remain elevated for a longer period, exerting downward pressure on the precious metal. Analysts note that while hopes for a diplomatic resolution between Washington and Tehran provide some support for gold, inflationary pressures remain a dominant negative driver. Gold has seen a total valuation decrease of 15% since the onset of the regional clashes in late February.