Gold Suddenly Plunges Again! Gold Price Plummets Nearly $70, Iran "Refutes" Trump's Statement

 In the early Asian session on Tuesday (June 30), the spot gold price suddenly plummeted, with gold prices currently falling to around $3,947 per ounce, a drop of about $70 on the day.

(Spot gold 15-min chart Source: 24K99)

Bloomberg reported that as US-Iran tensions put pressure on the inflation outlook, gold prices continued to decline. Traders are weighing conflicting signals from both the US and Iran regarding the upcoming new round of talks aimed at ending the war that has driven global inflationary pressures.

(Screenshot Source: Bloomberg)

On the previous trading day, gold prices plunged nearly 2%. Washington stated that negotiations with Tehran would begin in Doha on Tuesday, while the Iranian Foreign Ministry announced on Telegram that it would send a delegation of experts but ruled out direct talks with the US side.

US President Donald Trump stated earlier on Monday via “Truth Social” that Iran had requested talks, “The talks will be held tomorrow at 10:00 (UTC+8) in (Qatar) Doha.”

Iran's Tasnim News Agency cited an Iranian Foreign Ministry spokesperson as saying: “In the coming days, we will not hold any negotiation meetings with the US side at any level.”

On Monday evening local time, Iranian Foreign Ministry spokesperson Baghaei stated that Iran has no plans for negotiations with the US side in the coming days. He also revealed that an Iranian delegation of experts would travel to Doha to follow up on the implementation of the “Islamabad Memorandum of Understanding,” but this visit is unrelated to the US delegation’s trip to Qatar.

In addition, Iran's Deputy Foreign Minister Kazem Gharibabadi stated that Tehran plans to continue advancing regulatory arrangements for passage through the Strait of Hormuz. This move has been opposed by the US, Europe, and Gulf Arab states, highlighting the divisions among all parties regarding the future management of this critical waterway.

Since the outbreak of the Iran war in late February, gold prices have fallen by nearly 24%.

(Screenshot Source: Bloomberg)

The surge in energy prices caused by the war has heightened market expectations that central banks will maintain high interest rates for a longer period, which is a bearish factor for non-yielding precious metals.

Amid the latest developments in the Middle East situation, the US Supreme Court has ruled that Federal Reserve Governor Lisa Cook can remain in office during litigation as former President Trump seeks to remove her over unproven allegations of mortgage fraud.

This ruling strengthens the independence of the Federal Reserve. Currently, the Fed faces pressure from Trump to cut rates, but some officials have hinted that interest rates may even need to rise further to curb inflation. Last week's latest US inflation data, while remaining elevated, largely met market expectations.