23 June | Gold

Gold prices fall despite expectations of Iran’s response to US actions

Gold prices fall despite expectations of Iran’s response to US actions

Gold prices fell on Monday after a recent rally. According to Bloomberg, market participants are anticipating retaliatory measures from Iran following US intervention in the Middle East conflict.

Geopolitical tensions continue to fuel interest in the precious metal, with its prices surging nearly 30% since the start of the year. Meanwhile, oil is rallying on concerns over a potential blockade of the Strait of Hormuz. A further rise in energy prices could exacerbate inflationary pressures in the US, reducing the likelihood of Federal Reserve rate cuts. As the agency notes, this dynamic is dampening demand for non-yielding assets like gold.

According to Daniel Hynes of ANZ Banking Group, markets aren't currently pricing in any significant escalation in geopolitical tensions. This explains the softening demand for safe-haven assets.

With Tehran maintaining its restrained stance and key allies providing only diplomatic support, combined with gold still trading $140 below its April high, gold's upside potential remains limited, says Bloomberg.

Elena Berseneva MarketCheese
Brent sell
Period: 22.08.2025 Expectation: 395 pips
Brent fluctuates amid fundamental uncertainty
15 August 2025 33
Period: 22.08.2025 Expectation: 1000 pips
0.9 level proved to be too high for AUDCAD buyers
15 August 2025 36
Period: 22.08.2025 Expectation: 500 pips
Spiking US inflation pushes SPX down
15 August 2025 27
Period: 15.08.2025 Expectation: 2000 pips
Selling AUDUSD with 0.6480 target
15 August 2025 20
Period: 22.08.2025 Expectation: 2085 pips
GBPUSD rises amid improved UK economic conditions
15 August 2025 24
Period: 21.08.2025 Expectation: 1455 pips
Selling USDJPY with 145 target amid growing expectations of BOJ rate hike
14 August 2025 50
Go to forecasts