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Gold Prices Fall Amid Inflation Fears and Failed US-Iran Talks
Global gold prices declined at the start of the week as rising inflation concerns intensified following the collapse of peace negotiations between the United States and Iran.
The situation has strengthened the US dollar and pushed oil prices higher, ultimately reducing expectations for interest rate cuts by the Federal Reserve this year.
On Monday (April 13, 2026), spot gold prices dropped 0.7% to $4,716.70 per ounce, marking the lowest level since April 7. Meanwhile, US gold futures for June delivery fell 1% to $4,738.90 per ounce. At the same time, the US dollar gained 0.4%, making dollar-denominated gold more expensive for global investors.
Pressure on gold increased further as oil prices surged above $100 per barrel, driven by escalating tensions in the Middle East after the failed US-Iran negotiations. Reports suggest that the United States is considering a blockade in the Strait of Hormuz to restrict Iranian oil exports.
In response, Iran’s Revolutionary Guard warned that any military vessels approaching the area would be treated as violating the ceasefire and would face firm action.
According to KCM Trade analyst Tim Waterer, market sentiment has shifted rapidly. He noted that fading optimism over a ceasefire, combined with rising oil prices and a stronger US dollar, has weighed heavily on gold.
Since the conflict involving the United States and Israel against Iran began on February 28, gold prices have fallen by more than 11%. This is notable, as gold is traditionally viewed as a safe-haven asset during periods of geopolitical uncertainty and rising inflation.
However, higher interest rates have reduced gold’s appeal, as it does not offer yield. At the same time, rising energy prices continue to fuel inflation, prompting central banks to maintain or even increase interest rates.
Waterer added that whenever oil prices exceed $100 per barrel, markets quickly speculate about potential rate hikes to curb inflation. This expectation has been a key factor weakening gold performance.
Currently, market participants see a lower probability of Federal Reserve rate cuts this year. Prior to the escalation in the Middle East, expectations pointed to two potential rate cuts in 2026.
In other precious metals, silver fell 2% to $74.35 per ounce, platinum edged down 0.2% to $2,041.40, while palladium rose 0.7% to $1,530.80 per ounce.