Gold drops as oil climbs on renewed US-Iran hostilities
Gold prices fell more than 1 per cent on Wednesday, as oil prices rose on renewed hostilities between the U.S. and Iran, fuelling concerns about inflation and interest rate hikes.
- Spot gold fell 1.4 per cent to $4,203.20 per ounce by 0050 GMT. Bullion hit its lowest level since March 23 on Tuesday.
- U.S. gold futures for August delivery were down 1.4 per cent at $4,227.
- The dollar rose, making greenback-priced bullion more expensive for holders of other currencies.
- The United States on Tuesday launched strikes against Iran after President Donald Trump said Tehran had shot down a U.S. Apache helicopter in the Strait of Hormuz, deepening doubts over a potential peace deal and further straining a fragile ceasefire.
- Oil prices rose 1 per cent on Wednesday, stoking concerns around inflation and higher-for-longer interest rates.
- Traders are now pricing in a more than 70 per cent chance of a Federal Reserve rate hike by December, according to the CME
While gold is seen as a hedge against inflation, higher interest rates tend to weigh on the non-yielding metal. *
Markets are awaiting key U.S. inflation reports this week, including the May Consumer Price Index data, due later in the day, and the Producer Price Index reading on Thursday, to assess the Fed’s monetary policy stance.
India’s sharp increase in gold import tariffs is fuelling a resurgence in smuggling that could exceed 100 metric tons this year, as soaring grey market margins allow smugglers to undercut banks and refiners of the precious metal.
Spot silver fell 1.4 per cent to $64.48 per ounce, platinum lost 1.5 per cent to $1,700.38, and palladium fell 0.8 per cent to
Published on June 10, 2026
