Gold slid to a two-week low on Tuesday
as the U.S.-Iran conflict in the Gulf sent oil prices soaring
and fuelled inflation fears, with hawkish remarks from Federal
Reserve Governor Christopher Waller further reinforcing bets on
higher U.S. interest rates.
Spot gold was down 0.2% at $3,993.83 per ounce by
0110 GMT, having shed about 3% in the previous session in its
biggest daily percentage decline in more than a month. U.S. gold
futures for August delivery were steady at $4,000.70.
The U.S. military carried out a third consecutive night of
strikes against Iran on Monday and two tankers came under fire
in the Strait of Hormuz, after U.S. President Donald Trump said
Washington was reinstating its blockade of Iranian shipping in
the Gulf.
Oil futures hit their highest point since mid-June, having
surged about 9% in the previous session, while U.S. Treasury
yields and the dollar climbed as the conflict between the United
States and Iran re-ignited over the weekend.
Investors will closely watch June U.S. CPI data due later
in the day for fresh clues on inflation and the Fed’s policy
path, with PPI data and Fed Chair Kevin Warsh’s first semiannual
testimony before Congress this week also in focus.
The U.S. central bank may need to raise interest rates “in
the near term” if coming data show inflation continuing well
above the 2% target, Waller said on Monday, in remarks that
characterized monetary policy as being at a “crossroads.”
Traders have ramped up bets on a September U.S. interest
rate hike, with CME Group’s FedWatch Tool showing the
probability rising to around 78% from 57% a week ago.
The European Union announced on Monday new sanctions
against Sudan by targeting the country’s gold trade, which it
said was being used to finance the military conflict in the
country.
Elsewhere, spot silver declined 1.2% to $56.98 per
ounce, having earlier touched a two-week low.
Published on July 14, 2026
