Gold drops as traders watch Iran tensions for inflation outlook
Published Tue, Jun 30, 2026 · 08:04 AM
[NEW YORK] Gold fell as the US and Iran agreed to stop attacking each other, following tit-for-tat strikes that tested a fragile truce in a war that has fuelled global inflationary pressures.
The metal dropped as much as 2.2 per cent towards US$4,000 an ounce Monday (Jun 29) before paring losses. President Donald Trump said peace talks with Iran are set to resume on Tuesday in Doha.
Gold is down more than 23 per cent since the war began in late February and briefly dipped below US$4,000 last week. The war-driven spike in energy prices raised expectations that central banks would keep interest rates higher for longer, a negative for non-yielding bullion. Oil prices nudged higher on Monday.
Gold holding above US$4,000 despite renewed signs of tension in the strait “suggests marginal dip buyers have returned and are willing to defend this level”, said Justin Lin, an analyst at Global X ETFs Australia. “I expect gold to become increasingly resilient to Middle East volatility, especially now that it has completely erased year-to-date gains and fast-money investors have likely largely moved on.”
The latest developments in the Middle East come in the wake of US inflation data last week that, while high, was within analyst estimates. Federal Reserve Bank of Richmond president Tom Barkin on Sunday warned that inflation is too high, though he sees tentative signs that price pressures may moderate soon.
Spot gold fell 1.8 per cent to US$ 4,016.97 an ounce as of 4.34 pm in New York. Silver slipped 1.5 per cent to US$ 58.29 an ounce. Platinum retreated, while palladium gained. The Bloomberg Dollar Spot Index was little changed. BLOOMBERG
