Gold prices fell to a two-month ​low on Thursday as fresh US attacks on Iran ⁠boosted the dollar and pushed oil prices higher, stoking concerns about rising inflation and clouding the interest rate outlook.

Spot gold was down 1.7 per cent ‌at $4,380.62 per ounce, as of 0409 GMT, earlier falling to its lowest level since March 26. US gold ‌futures for June delivery fell 1.6 per cent to $4,377.10.

The dollar ‌rose ⁠to a one-week high, making greenback-priced bullion more expensive ⁠for holders of other currencies.

“Geopolitical tensions remain high, and we’ve had too many false alarms from the peace deal talks. So I think the ​US dollar is going to remain ‌bid, and that means gold is likely to remain under pressure,” said Matt Simpson, a senior analyst at StoneX.

The US military carried out new strikes in Iran targeting a military ‌site that officials believed posed a threat to ​US forces and commercial shipping in the Strait of Hormuz, a US official said, hours after President ⁠Donald Trump dismissed an Iranian report of a deal to restore traffic through the strategic waterway.

Oil prices jumped more than 3 per cent on ‌Thursday after Iran’s Revolutionary Guards said they targeted a US airbase in response to the US attack.

Elevated crude prices can accelerate inflation and keep interest rates higher for longer. While gold is seen as a hedge against inflation, higher rates tend to weigh on the non-yielding metal.

Federal Reserve Governor Lisa Cook ‌on Wednesday said she feels the US central bank should hold short-term ​interest rates steady for now, but, with tariffs, the Iran war, and a surge in AI-related investment pushing ⁠prices higher, she is prepared to hike rates if needed.

Investors await ⁠the release of US Personal Consumption Expenditures data, due later in the day, for clues on the Fed’s monetary ‌policy path.

Spot silver fell 3 per cent to $72.37 per ounce and platinum lost 1.4 per cent to $1,890.81, both hitting a near one-month low. ​Palladium slid 1.9 per cent to $1,364.26.

Published on May 28, 2026