Gold at over one-week low--

FE Team | Published: May 15, 2026 21:50:08

Gold fell to a more than one-week low on Friday, as US Treasury yields and the dollar climbed, while heightening inflation concerns due to the conflict in the Middle East reinforced bets for higher interest rates, reports Reuters.
Spot gold was down 2.6 per cent at $4,527.80 per ounce by 9:40 a.m. EDT (1340 GMT), its lowest since May 5. Prices were down 4 per cent so far this week.
US gold futures for June delivery lost 3.2 per cent to $4,535.
"There was a sell-off across the (precious metals) for a couple of reasons. The dollar is quite strong today. We're also seeing not just a US increase, but a global increase in (bond) yield rates," said Edward Meir, an analyst at Marex.
Benchmark 10-year US Treasury yields rose to a near one-year high, increasing non-yielding bullion's opportunity cost. The dollar was set for its highest weekly gain in two months, making greenback-priced gold more expensive for overseas buyers.
US President Donald Trump said his patience with Iran was running out and left China with no major breakthroughs on trade or tangible help to end the war.
"The Chinese really didn't offer much help in resolving the conflict, and we're seeing crude oil move up, which reinforces the inflation narrative and that's been very bearish for the metals," he added.
Crude oil prices have risen more than 40 per cent since the US-Israel war on Iran began, leading to higher inflation globally. Central banks tend to hike interest rates during times of inflation, which in turn tends to dim non-yielding bullion's appeal.
Traders have largely priced out US interest rate cuts this year while bets for a hike have risen, according to CME's FedWatch Tool.
Spot silver fell 8.7 per cent to $76.26 per ounce, platinum lost 4.1 per cent to $1,967.35, and palladium was down 1.9 per cent at $1,409.75. All three were headed for weekly losses.
Silver fell as much as 9 per cent earlier and was on track for its worst daily performance since March 3.