Gold futures broke below a closely watched support level as the risk premium tied to the Iran conflict starts to fray. Rising Treasury yields and a jump in oil prices added further pressure on the metal, while an unverified market alert pointed to a combined $400 billion drop in gold and silver value.
Gold futures pierced a key support level at $4,122.54 on the daily chart, after earlier testing the day's high at $4,197.22. The break points to a sustained slide continuing through the rest of the week.
Hormuz risk premium starts to fray
The U.S.-Iran conflict has now stretched to its 222nd day, a length now comparable to the 1979 crisis. U.K. Maritime Trade Operations, a British navy monitor, reported nine attacks on tankers in the Strait of Hormuz so far this month, half of September's total for the waterway and the Gulf combined.
Secretary of State Marco Rubio said Wednesday that Tehran had lost control of the waterway. According to Rubio: "There's almost as much oil flowing out now as there was before this conflict began". His comments followed Vice President JD Vance's Reuters interview published Tuesday, in which Vance, in what appeared to be a softening of U.S. demands, said Iran needed to meaningfully reduce its enrichment capacity rather than eliminate it entirely.
Oil and Treasury yields climb as gold weakens
Oil prices had earlier eased, with Brent crude falling below $100 a barrel and WTI dropping under $90, before both contracts rebounded Tuesday as Tehran increased tanker strikes. Brent crude then climbed above $101 per barrel Wednesday. The ten-year Treasury yield reached 5.35% during Wednesday's trading, adding pressure on gold, which offers no interest income.
An accompanying market alert estimated that gold and silver lost $400 billion in combined value within ten minutes, though the figure could not be independently verified and describes valuation swings rather than confirmed outflows.
The metal now trades without a technical floor below the former $4,122.54 support on the daily chart.
Sources: Investing.com, CoinGape
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