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Global Gold Prices Fall to One-Week Low Triggered by Oil Price Surge
Global gold prices fell to a one-week low in trading on Friday (May 15, 2026), as rising oil prices again sparked concerns over global inflation.
This condition pushed up U.S. Treasury bond yields and strengthened speculation that high interest rates will last longer.
Spot gold prices dropped 2% to US$ 4,557.25 per troy ounce at 08:22 local time, marking the lowest level since May 6. Over the past week, gold prices have corrected by 3.3%.
U.S. June futures contracts also declined further, down 2.7% to US$ 4,561.30 per troy ounce.
Pressure on gold occurred amid a surge in 10-year U.S. government bond yields approaching the highest level in nearly a year. The yield increase makes non-yielding assets like gold less attractive to investors.
KCM Trade market analyst chief Tim Waterer said the market is now doubting the chances of a U.S. interest rate cut in the near future.
"The rise in oil prices rekindles inflation fears, driving yields and the U.S. dollar higher, putting pressure on gold from multiple directions," he said.
The surge in oil prices was triggered by escalating Iran conflicts disrupting global energy supply routes.
Brent crude oil prices rose 6.6% this week and stayed above US$ 108 per barrel amid disruptions in activity at the Strait of Hormuz, a key global oil distribution route.
This situation increases the risk of energy inflation spilling over into the prices of other goods and services.
Several U.S. inflation data released this week also showed persistent price pressures, leading markets to reduce expectations of a Federal Reserve rate cut.
According to CME FedWatch, market participants now 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% this week, making gold more expensive for investors holding other currencies.
Since the U.S.-Israel conflict with Iran erupted on February 28, gold prices have fallen more than 13%. Previously, precious metals had been a primary safe-haven asset during heightened geopolitical tensions.
On the geopolitical front, U.S. President Donald Trump left China after bringing several business agreements that were not enough to boost market sentiment. Meanwhile, Beijing warned Washington over Taiwan issues and emphasized that war with Iran “should never happen.”
In the Asian physical market, gold price discounts in India surged to record highs after the government increased import duties, weakening demand and triggering investor sell-offs. Conversely, gold price premiums in China remained strong due to high investment demand.
Not only gold, but other precious metals also came under pressure. Silver prices plummeted 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.