Gold drops as inflation worries linger on failed US-Iran talks
Spot gold has fallen more than 11 per cent since the US-Israeli strikes on Iran began on February 28
13 April, 2026
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Gold prices touched a near one-week low on Monday, pressured by a stronger dollar, while a surge in oil prices following failed US-Iran peace talks fuelled
inflation worries and dampened expectations for Federal Reserve interest rate cuts this year.
Spot gold was down 0.4 per cent at $4,726.64 per ounce, as of 0620 GMT, after hitting its lowest since April 7 earlier in the day at $4,643. US gold futures for June delivery fell 0.8 per cent to $4,748.70.
The dollar strengthened 0.3 per cent, while oil prices bounced back above $100 a barrel, as the US Navy prepared a blockade of the Strait of Hormuz that could restrict Iranian oil shipments, following the US and Iran’s failure to reach a deal to end the war.
Iran’s Revolutionary Guards responded by warning that military vessels approaching the Strait will be considered a ceasefire breach and dealt with harshly and decisively.
Oil prices has put gold on the back foot again
“Ceasefire optimism has unwound following the failure of the peace talks, and the resulting push higher by the dollar and oil prices has put gold on the back foot again,” said Tim Waterer, chief market analyst, KCM Trade.
Spot gold has fallen more than 11 per cent since the US-Israeli strikes on Iran began on February 28.
While inflation and geopolitical risks typically boost gold’s appeal as a hedge, elevated interest rates weigh on the non-yielding metal.
A stronger dollar also makes greenback-priced bullion more expensive for holders of other currencies.
“As soon as oil prices push back above $100, attention quickly turns to potential central bank rate hikes to curb inflation, and it is this interest rate outlook that is undermining gold’s performance,” Waterer said.
Traders now see little chance of a US rate cut this year, as higher energy prices threaten to feed into broader inflation and limit the scope for monetary easing.
Before the war in the Middle East began, there were expectations for two Fed rate cuts this year.
Among other metals, spot silver fell 1.9 per cent to $74.41 per ounce, platinum lost 0.2 per cent to $2,041.89, while palladium gained 0.5 per cent to $1,527.95.


















