Gold Slides to Two-Month Low Amid Rising US-Iran Inflation Fears

Gold prices tumbled to their lowest level since March on Thursday, dropping 1.8% to $4,375 an ounce as fresh US strikes on Iran pushed the dollar higher and drove oil prices up more than 3%.

The attacks, which targeted a military site near the Strait of Hormuz, reignited concerns over rising inflation and higher interest rates. A stronger dollar makes gold more expensive for buyers using other currencies.

Federal Reserve Governor Lisa Cook said the central bank should hold rates steady for now, but signalled she is prepared to hike if needed as the Iran war and AI‑related investment push prices higher.

Investors are now watching US inflation data due later Thursday for further clues on the Fed’s next move. Silver, platinum, and palladium also fell more than 2% each.

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