International Gold Prices Fall More Than 2% to $4,411.99 an Ounce

International gold prices fell more than 2% as markets focused on easing tensions in the Middle East and the potential return of appetite for risk assets.

Walter Bloomberg reported on May 27 that spot gold traded at $4,411.99 an ounce, down about 2% from the previous session.

The decline appears to reflect easing safe-haven demand as the U.S. and Iran continued talks on extending a ceasefire and normalizing passage through the Strait of Hormuz. Expectations for lower geopolitical risk in the Middle East added pressure on gold prices.

A stronger U.S. dollar and moves in Treasury yields also weighed on gold. The metal typically becomes less attractive when interest rates rise and the dollar strengthens.

The U.S. and Iran, however, still remain divided over limits on uranium enrichment and the scope of sanctions relief. Markets are also watching for the possibility of greater volatility in gold prices if tensions in the Middle East escalate again.