TechFlow News, May 27 (Wednesday): Gold prices edged lower for the second consecutive trading day. Renewed tensions between the U.S. and Iran have dampened hopes for a swift resolution to the conflict, sustaining inflation concerns and casting uncertainty over the interest-rate outlook. Spot gold fell as much as 0.3%, reaching $4,494.16 per ounce. On Tuesday, Iran stated that the U.S. had struck targets near the Strait of Hormuz—a move it claimed violated the ceasefire agreement—and warned that such actions could further complicate efforts to end the war.
Lukman Otunuga, Senior Research Analyst at FXTM, said: “As market confidence in a U.S.-Iran peace deal wanes, gold prices have retreated, approaching the $4,450 support level. Moreover, rising price pressures triggered by the conflict are steadily reinforcing market expectations of a Federal Reserve rate hike—adding further downward pressure on gold.” “Ultimately, any additional signs of intensifying price pressures could further solidify market bets that the Fed will keep rates elevated for an extended period, heightening gold’s downside risk.” (Jin Shi)
