Gold slips as US-Iran tensions lift oil, stoke inflation fears
Tue May 26 2026
Gold fell on Tuesday as fresh U.S. attacks in Iran pushed oil prices higher, fuelling concerns around inflation and higher-for-longer interest rates.
FUNDAMENTALS
* Spot gold was down 0.6% at $4,544.33 per ounce, as of 0049 GMT. U.S. gold futures for June delivery gained 0.5% to $4,545.60.
* Iran's top negotiator and its foreign minister were in Doha for talks with Qatar's prime minister on a potential deal with the U.S. to end the three-month-old war, an official briefed on the visit said on Monday, after Washington and Tehran played down hopes for an imminent breakthrough.
* Even as the talks proceeded, U.S. forces on Monday conducted strikes in southern Iran against targets including boats attempting to lay mines and missile launch sites, in what it described as defensive actions.
* Brent crude futures rose nearly 2% in early Asian trade on Tuesday, as tensions between the U.S. and Iran persisted. [O/R]
* Elevated crude oil prices can fuel inflation and keep interest rates higher for longer. While gold is seen as a hedge against inflation, higher rates tend to weigh on the non-yielding metal.
* Markets are pricing in a U.S. Federal Reserve rate hike before year-end, with a 54% chance of a move by December, according to CME Group's FedWatch tool. [FEDWATCH]
* Ghana's government is committed to renewing the mining lease for Gold Fields' Tarkwa mine, it said on Monday, adding that it will subject the South African miner to fresh scrutiny of its plans before any renewal is granted.
* Spot silver fell 0.8% to $77.42 per ounce, platinum lost 0.5% to $1,958.18, and palladium slid 0.6% to $1,389.68.