11/06/2026 06:50 AST
Gold fell to an 11-week low on Wednesday, as oil prices rose on renewed hostilities between the US and Iran, fueling concerns about inflation and interest rate hikes.
Spot gold was down 1.7% at $4,191.84 per ounce by 0747 GMT, after hitting its lowest level since March 23. US gold futures for August delivery shed 1.6% to $4,215.60, Reuters reported.
"We're seeing a kind of readjustment broadly ?in what global central ?banks are going to do, and there's been a major hawkish shift," said Ilya Spivak, head of global macro at Tastylive.
The United States on Tuesday launched strikes against Iran after President Donald Trump said Tehran had shot down a US Apache helicopter in the Strait ?of Hormuz. Iran's Revolutionary Guards said they retaliated with attacks against a US base in Jordan and 21 other targets in the Gulf on Wednesday.
Oil prices rose, keeping up expectations that interest rates would stay higher for longer.
While gold is seen as a hedge against inflation, higher rates tend to weigh on the non-yielding metal.
Traders are now pricing in a more than 70% chance of a US rate hike by December, according to the CME ?FedWatch tool.
Markets ?are awaiting key US inflation reports this week, including the May Consumer Price Index data later in the day and the Producer Price Index reading on Thursday, to gauge the Federal Reserve's monetary policy stance.
"If we can break the $4,100 level, I think the path of resistance fundamentally changes for gold, and we might be starting to look at $3,500 as the next level into the end of the year," Spivak said.
Spot silver fell 1.3% to $64.54 per ounce, platinum dropped 3% to $1,675.25, and palladium fell 0.7% to $1,213.47.
Asharq Al Awsat
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