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 slumps as U.S.-Iran strikes, Fed's Waller fuel rate hike betsFor gold, elevated energy prices raise the prospect of the U.S. central bank hiking rates to combat stubborn inflationAuthor of the article:Last updated Jul 13, 2026 You can save this article by registering for free here. Or sign-in if you have an account.Gold is down by more than a fifth since the Iran war started in late February, with a wave of profit-taking ending a three-year bull run and briefly pushing the metal below US$4,000. Photo by Chris Ratcliffe/BloombergGold dropped the most in more than two weeks as renewed United States-Iran hostilities in the Middle East and remarks from a monetary policymaker fuelled expectations that the Federal Reserve may raise interest rates to contain inflation.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 slid as much as 3.2 per cent to trade below US$4,000 an ounce, the largest intraday drop since June 24 as Fed Governor Christopher Waller said policymakers may need to raise rates in the near term. Swap traders are now pricing in a 43 per cent chance of a rate hike at the Fed’s July meeting, up from nearly 40 per cent before Waller’s remarks. Higher borrowing costs are a headwind for precious metals, which don’t bear interest.Meanwhile, U.S. Central Command said its forces will resume blockading maritime traffic entering and exiting Iranian ports on July 14 at 4 p.m. ET, after President Donald Trump said the U.S. would reinstate its blockade of Iranian ships transiting the Strait of Hormuz and demanded a 20 per cent reimbursement on all other cargo shipped through the waterway. Earlier, American forces carried out strikes in response to an attack on a container ship, Central Command said. Brent crude jumped more than five per cent intraday.For gold, elevated energy prices raise the prospect of the U.S. central bank hiking rates to combat stubborn inflation.“Renewed geopolitical tension has sent another shockwave through an already fragile gold market,” said Hebe Chen, an analyst at Vantage Markets in Melbourne. “Unless the fighting around Hormuz meaningfully settles and turns a new page for precious metals, elevated oil prices, firmer yields and a stronger dollar could keep gold pinned under pressure this week.” Production of gold and silver coins and bars at Mennica Polska S.A. in Warsaw, Poland, on Thursday, Feb.12, 2026. Photographer: Damian Lemanski/BloombergGold is down by more than a fifth since the Iran war started in late February, with a wave of profit-taking ending a three-year bull run and briefly pushing the metal below US$4,000 for the first time since November.The latest pressure on gold comes as Kevin Warsh prepares to make his first appearance before Congress as Fed chairman. Tuesday’s House Financial Services Committee hearing in Washington will be preceded by June consumer price figures from the Bureau of Labor Statistics.Spot gold dropped 2.9 per cent to US$3,998.59 an ounce as of 3:24 p.m. in New York. Silver fell four per cent. Platinum and palladium were both lower. The Bloomberg Dollar Spot Index, a gauge of the strength of the greenback, was up 0.3 per cent.—With assistance from Robin Paxton and Jack Ryan. 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.