WASHINGTON (dpa-AFX) - Gold prices have moved lower on Tuesday as investors avoided big bets with U.S. citizens voting in the midterm elections today. Attention was also drawn to ongoing efforts to secure peace in the Middle East while the U.S. carried out a limited attack on Iran's Qeshm Island.
Front Month Comex Gold for December delivery has edged lower by $27.60 (or 0.70%) to $3,942.00 per troy ounce.
Front Month Comex Silver for December delivery has plunged by $1.138 (or 2.24%) to $49.750 per troy ounce.
The midterm elections in the U.S. are underway.
Hours before the elections, through Truth Social, U.S. President Donald Trump posted that Iran wants a settlement as soon as possible, thereby hinting that a deal could happen anytime.
Throughout the past couple of weeks, several media reports had indicated that jointly with Israel, U.S. forces could strike Iran on a big-scale after the elections. In response, Iranian leaders had announced full preparedness to combat any attack and warned that the consequences could be devastating.
However, a day before, when asked about the possibility of military strikes on Iran after the elections, Trump replied in the negative.
History shows that out of the 13 midterm elections since 1974, gold's average price in the following November was higher than its average in the election month in eight of those elections and lower in five others.
Today, citing weaker appetite for bars and coins, the World Gold Council cut its forecast for growth in gold investment for 2026 to 200 metric tons from the previous 400 metric tons.
The U.S.-Iran conflict, which began in February, entered its 249th day today.
Citing officials, the Wall Street Journal reported that U.S. forces carried out a series of limited strikes on Iran's Qeshm Island yesterday.
Iran's IRNA news agency reported that the attack triggered a series of explosions on the island, which is located in the Strait of Hormuz.
The WSJ report also mentioned that the hits were deliberately kept secret but cited an official as saying that they do not signify any restart of a broader escalation.
A few officials hinted that the attacks could be a measure to stop Iran from attacking commercial ships in the Strait of Hormuz.
Speaking about the attacks, Trump downplayed the incident, calling the operation minor. Iran's President Masoud Pezeshkian stressed that such exchange of attacks benefit none and reiterated Iran's commitment to the peace process for resolving disputes.
The prospects for an agreement between the U.S. and Iran to construct a framework for negotiations appeared brighter over the past two days and as a result, crude oil prices nosedived, lowering inflation concerns due to which, gold prices moved up.
Earlier, Axios had reported that during a conversation with Israeli Prime Minister Benjamin Netanyahu, Trump had expressed his preference to let negotiations play out first before any restart of military campaigns.
Expectations on diplomacy gaining strength in place of military campaigns increased after Iran's President Masoud Pezeshkian announced that Iran's Supreme Leader Mojtaba Khamenei granted the government certain authorities for peace talks to end hostilities.
Qatar accelerated the steps to bring the U.S. and Iran to agree to a preliminary agreement to charter a negotiations plan. Iran admitted ongoing talks with the U.S. through Qatar.
A spokesperson for Qatar's Foreign Ministry Majed al Ansari stated that Qatar is hopeful of reaching an interim deal as both sides reviewed the proposals presented during Qatari mediation. He also added that both parties remain committed to the negotiation process.
Today, the U.S. dollar index was last seen trading at 101.78, up by 0.04 (or 0.04%) today.
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