Gold drops to over one-year low as fading Middle East peace hopes fan inflation fears
GLD•Gold fell 2.7% to $3,880.93 an ounce, its lowest since October 2025, as rising oil prices, fading hopes for a deal with Iran and a stronger dollar heightened inflation and interest-rate concerns.
1. Gold extends losses
Spot gold fell 2.7% to $3,880.93 per ounce by 1:53 p.m. ET on Thursday, after touching its lowest level since October 2025. US gold futures for December delivery settled 2.9% lower at $3,885.30 per ounce, with gold down for a third straight session.
2. Rates weigh on bullion
Oil prices climbed after President Donald Trump said the United States did not need a deal with Iran, diminishing hopes of an agreement to end the conflict. Higher energy prices fueled inflation concerns and expectations that the Federal Reserve could keep interest rates higher for longer. Traders saw an 87% chance of a 25-basis-point rate hike in December, while the probability of a 50-basis-point move also increased.
3. Other metals decline
A near 19-month high for the dollar, a hot US inflation reading and hawkish Fed remarks also weighed on gold, analysts said. Investors awaited US producer price index data due Friday. Spot silver fell 3% to $50.12 an ounce, platinum lost 1.2% to $1,518.49, and palladium dropped 3.1% to $995.91.
