Gold prices plummet.

Global gold prices fell by nearly $90 in the current trading session, as new airstrikes between Iran and the US further fueled concerns about inflation.

World gold prices are falling far below the $4,500/ounce mark. Photo: Bloomberg .

During trading on June 1st (US time), the spot price of gold fell sharply by $88.5 to $4,449.8 per ounce. Gold futures contracts in the US also decreased by 1.3% to $4,533.2 per ounce.

In just the last 24 hours, the precious metal has lost nearly 2% of its value, and over the past month, it has fallen by almost 4%.

Jim Wyckoff, a market analyst, stated: "Expectations that interest rates will remain high for longer could continue to put pressure on gold prices, unless bond yields stop rising and interest rates begin to stabilize or trend downward."

Regarding the political situation, Reuters reported that diplomatic efforts to end the three-month-long war between the US and Iran have yet to make significant progress, as both sides continue to blame each other for actions that have escalated tensions in the region.

On the other hand, according to CME Group's FedWatch tool, traders currently assess a 51% probability that the Federal Reserve (Fed) will implement at least one interest rate hike before the end of this year.

This week, the market will be focused on monitoring a series of US employment data releases and statements from Fed officials for further signals on the outlook for monetary policy.

Meanwhile, on May 31, Federal Reserve Governor Jerome Powell warned of the negative impacts of politicizing the Fed. His term as Fed Chairman officially ended on May 15, and his successor, Kevin Warsh, was sworn in on May 22.

Powell decided to remain as Governor of the Fed because he believed that threats to the central bank's independence still existed.

In other metals markets, spot silver prices rose 0.5% to $75.61 per ounce, platinum increased 1.5% to $1,944.7 per ounce, while palladium fell 0.1% to $1,352.75 per ounce.

In a recently published report, Morgan Stanley stated that the palladium market is gradually moving towards equilibrium as supply constraints are offset by weakening demand from the automotive industry.

Source: https://znews.vn/gia-vang-sap-post1656100.html