Gold prices slid 3% on Thursday, extending losses for a third straight session to hit a more-than-one-year low, as oil prices climbed on fading hopes for peace in the Middle East that spurred fears of higher inflation and elevated interest rates.
Spot gold dipped 3.0% to $3,867.96 per ounce by 10:01 a.m. ET (1501 GMT), having touched its lowest level since October 2025 earlier in the session.
US gold futures for December delivery fell 3.2% to $3,872.00 per ounce.
US President Donald Trump said on social media on Thursday
that the US did not need a deal with Iran. “Those days had long
since passed,” he said, quashing hopes of a deal to end the
conflict, which started in late February with US-Israeli strikes
on Iran and has spread across the Middle East.
“If crude oil prices spike higher on this news, that’s
negative for gold from an inflation perspective,” said Jim
Wyckoff, a market analyst at American Gold Exchange.
Oil futures rose over 1%, fanning inflationary concerns and
expectations that the Federal Reserve could keep interest rates
higher for longer.
A hot US consumer prices reading on Tuesday, hawkish remarks
from Fed officials this week and a US dollar index rally to a
near 19-month high “are working to press the gold market
lower”, Wyckoff added.
Markets see a 91% chance of a 25-basis-point rate hike in
December, while the probability of a larger 50-basis-point move
also increased.
Higher interest rates reduce the appeal of non-yielding
bullion, while a stronger dollar makes gold costlier for
overseas buyers.
Investors now await US producer price index data due on
Friday for further cues on inflation and the monetary policy
outlook.
Among other metals, spot silver fell 3.33% to $49.97
per ounce after touching its lowest level since November 4
earlier in the session, while spot platinum lost 1.2% to
$1,519.05 after hitting its lowest since November 6. Spot
palladium dropped 3.0% to $997.19, a day after reaching
its highest level since October 22.
Source: Khaleej Times