Gold prices spiked up after the US strikes against Iran. President Donald Trump accused Iran of dragging out talks on an interim peace deal.  In response, Tehran said it was closing the Strait of Hormuz to all vessels. | Photo Credit: FRANCIS MASCARENHAS

Gold whipsawed after the US completed a fresh round of strikes against Iran, raising the stakes in a war that’s roiled global markets and stoked inflation.

Bullion rose as much as 1.1% in choppy trading, reversing a drop of similar magnitude that took the metal close to $4,000 an ounce earlier Thursday. The US military said it had completed strikes against targets in Iran, after US President Donald Trump accused the country of dragging out talks on an interim peace deal. In response, Tehran announced that it is closing the Strait of Hormuz to all vessels.

The latest attacks underscored Trump’s growing impatience that the two sides have failed to reach an agreement. Now in its fourth month, the war has disrupted energy flows via Hormuz, caused oil prices to rise and raised the likelihood of interest-rate hikes as central banks try to keep inflation in check.

US inflation accelerated in May to the fastest pace in more than three years as the war pushed up energy prices, outstripping Americans’ pay gains. The consumer price index climbed 0.5% from April and 4.2% from a year earlier, the most since early 2023, according to the Bureau of Labor Statistics data out Wednesday.

Gold is around 22% below where it was trading before the Iran war broke out at the end of February. The metal’s recent decline through its 200-day moving average has triggered additional selling as it’s seen as an important level watched by institutional investors.

“The constant flow of conflicting headlines is increasing uncertainties and prompting investors to reduce risk exposure and raise liquidity across a range of asset classes,” Robert Gottlieb, a consultant and former precious metals trader at JPMorgan Chase & Co., wrote in a LinkedIn post. The latest slump “is more about deleveraging and portfolio repositioning, rather than a fundamental reassessment of gold as a safe-haven asset,” he wrote.

Spot gold rose 0.6% to $4,097.73 an ounce at 10:05 a.m. in Singapore, having lost more than 4% in the previous session. Silver climbed 1% to $63.96 an ounce. Platinum and palladium also advanced. The Bloomberg Dollar Spot Index, a gauge of the US currency, was 0.1% lower.

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Published on June 11, 2026