Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeCommoditiesEconomyGold rebounds as traders assess Iran strikes, interest-rate pathThe precious metal is down by more than a fifth since the Iran war started in late FebruaryAuthor of the article:Last updated 1 hour ago You can save this article by registering for free here. Or sign-in if you have an account.For gold traders, renewed conflict in the Middle East raises the prospect of the Federal Reserve keeping interest rates higher for longer. Photo by Brendon Thorne/BloombergGold found some support following three days of losses as traders weighed a resumption of fighting in the Middle East and the United States Federal Reserve’s interest-rate path.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorBullion gained as much as 1.5 per cent and was trading around US$4,100 an ounce. The latest attacks in Iran, which the U.S. Central Command said were to degrade the country’s ability to disrupt commercial shipping in the Strait of Hormuz, came hours after President Donald Trump said he thought a ceasefire was “over.” Iran responded by targeting U.S. bases in Bahrain, Kuwait and Qatar, according to the semi-official Iranian Students’ News Agency.For gold traders, renewed conflict in the Middle East raises the prospect of the Federal Reserve keeping interest rates higher for longer to deal with the inflationary impact of higher energy prices. Higher rates are negative for non-yielding bullion.Gold has found support ahead of US$4,050 an ounce and is now bouncing as the dollar and yields trade soften, said Ole Hansen, head of commodity strategy at Saxo Bank A/S. “All in all, the price action in the last 24 hours strengthens my belief we have moved from capitulation to consolidation in gold,” he said.Gold is down by more than a fifth since the Iran war started in late February, with a wave of profit-taking bringing a three-year bull run to an end and recently pushing the metal below US$4,000 on several occasions. Gold sheets at the Polish mint, also known as Mennica Polska SA, in Warsaw, Poland. Photographer: Damian Lemanski/BloombergThe selloff has led banks to slash price forecasts throughout the year. HSBC Holdings PLC on Thursday trimmed its average price for 2026 by 6.3 per cent to US$4,560 an ounce, following similar cuts by investment banks including UBS Group AG, Deutsche Bank AG and Goldman Sachs Group Inc.Spot gold traded 1.1 per cent higher at US$4,120.49 an ounce at 3:44 p.m. in New York. Silver advanced 2.8 per cent to US$59.91 an ounce, while platinum and palladium also gained. The Bloomberg Dollar Spot Index, a gauge of the U.S. currency, was little changed.—With assistance from Jack Ryan, Yvonne Yue Li and Brandon Harden. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.