Gold Slips as Energy-Inflation Risks Linger Amid US–Iran Peace Talks
Gold prices moved lower on Wednesday (May 27) as uncertainty around US–Iran peace negotiations kept the risk of an energy-driven inflation wave—and the possibility of further central bank tightening—firmly on markets’ radar. At the time of writing, spot gold (XAU/USD) was trading around $4,442 per troy ounce.
Al Jazeera reported that indirect negotiations between Washington and Tehran continued despite an exchange of fire earlier in the week. The US said a fragile ceasefire remains in place, while Iran reiterated warnings of retaliation should the truce be violated. US Secretary of State Marco Rubio also said this week that it could take “a few days” for the two sides to reach an agreement.
Weekend reports had suggested the US and Iran were nearing a framework deal that could extend the ceasefire and reopen the Strait of Hormuz—a critical waterway off Iran’s southern coast that in normal times carries about a fifth of global oil flows. The strait has been largely shut since the war began in late February, tightening supply and previously pushing crude prices higher.
That energy shock has fueled concern that inflation pressures could spill over across major economies. In response, markets have leaned toward the view that central banks—including the Federal Reserve and the European Central Bank—may need to keep policy restrictive, or even raise rates to contain price pressures, a dynamic that continues to cap gold’s recovery potential.
Source: Newsmaker.id
