(RTTNews) - Gold prices fell toward $4,500 an ounce on Tuesday after American forces hit missile launch sites in Iran and boats trying to place mines, denting hopes of an imminent peace deal.
Spot gold tumbled 1.2 percent to $4,516.60 an ounce while U.S. gold futures for August delivery were down 0.1 percent at $4,551.22.
The dollar index was steady while Brent crude futures for August delivery jumped more than 3 percent above $96 a barrel after the U.S. conducted 'self-defense strikes' on Iranian missile launch sites and boats near the Strait of Hormuz, clouding the outlook for an interim deal between Washinton and Tehran.
Elsewhere, the Israeli military has begun a wave of strikes against Hezbollah in the Bekaa Vally in the east of Lebanon and other parts of the country following an announcement by Prime Minister Benjamin Netanyahu that his country will intensify its attacks on Hezbollah.
Defense forces across the Gulf are on high alert as Iran pressed ahead with waves of missile and drone attacks on the UAE, Kuwait and Bahrain.
Talks to end the war in Iran are going on and it's a lot of talking back and forth going on about specific language in the initial document, U.S. Secretary of State Marco Rubio said.
In a post on Truth Social, U.S. President Donald Trump said he expected Iran to hand over its enriched uranium to the United States to be destroyed, or have it destroyed in Iran with an international witness.
Iran has publicly denied reports that it had agreed to transfer its enriched uranium stockpile abroad, exposing the fragile and uncertain nature of the ongoing talks.
In other geopolitical news, Russia has threatened to launch a fresh wave of "systematic strikes" targeting command centers, military sites and drone facilities in Kyiv, while urging diplomats and foreign nationals to evacuate the Ukrainian capital.
The euro jumped to a one-week high against the dollar as traders ramped up bets on interest-rate hikes from the European Central Bank (ECB).
The ECB should raise interest rates in June even if there's a quick resolution to the Middle East conflict, ECB Executive Board member Isabel Schnabel said today.
"Even if the war ended today, a lot of damage has already been done to energy infrastructure and global supply chains," she said in an interview published on the ECB's website.
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