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Global Gold Prices Fall to One-Week Low Triggered by an Oil Price Surge

Global gold prices fell to a one-week low on Friday (15/5/2026), as oil prices surged again, reigniting concerns about global inflation.

This led to a rise in U.S. Treasury bond yields and strengthened speculation that high interest rates will remain in place for longer.

Spot gold fell 2% to US$ 4.557,25 per troy ounce at 08.22 local time, also reaching its lowest level since 6 May. Over the past week, gold prices have already corrected by 3,3%.

U.S. gold futures contracts for June delivery fell even more, down 2,7% to US$ 4.561,30 per troy ounce.

Pressure on gold occurred amid a surge in yields on U.S. government bonds with a 10-year tenor, nearing the highest level in nearly a year. The increase in yields makes interest-free assets such as gold less attractive to investors.

KCM Trade market analyst head Tim Waterer said the market is again doubting the likelihood of a U.S. interest rate cut in the near term.

“Rising oil prices bring inflation concerns back to the surface, driving yields and the U.S. dollar higher, putting gold under pressure from multiple directions,” he said.

The oil price surge was triggered by escalating conflict in Iran, disrupting global energy supply routes.

Brent crude rose 6,6% over the course of this week and held above US$ 108 per barrel, amid disruptions to the Strait of Hormuz, an important route for global oil distribution.

This situation increases the risk that energy inflation will spill over into the prices of other goods and services.

Several U.S. inflation data releases this week also showed that price pressure remains high, prompting markets to begin scaling back expectations for interest rate cuts by the U.S. central bank, the Federal Reserve.

Based on CME FedWatch, market participants now even see a 39% chance that the Fed will raise interest rates again before the end of the year.

In addition to rate pressures, the strengthening U.S. dollar also weighed on gold prices. The U.S. dollar index rose more than 1% over the course of this week, making gold more expensive for investors holding other currencies.

Since the outbreak of the U.S.-Israel war with Iran on 28 February, gold prices have fallen by more than 13%. Previously, the precious metal had briefly become a key safe-haven asset as geopolitical tensions increased.

On the geopolitical front, U.S. President Donald Trump left China after bringing with him a number of business deals that were viewed as not enough to deliver a positive sentiment boost to the market. Meanwhile, Beijing warned Washington regarding Taiwan issues and emphasized that war with Iran “should never happen.”

In Asia’s physical market, gold price discounts in India jumped to a record high after the government increased import duties, weakening demand and prompting investors to sell. By contrast, gold price premiums in China remained strong because investment demand is still high.

Not only gold—other precious metals were also under pressure. Silver prices plunged 6,4% to US$ 78,16 per troy ounce, platinum fell 2,7% to US$ 1.999,60, while palladium weakened 0,7% to US$ 1.427,39 per troy ounce.