- Gold prices fell to a two-month low early Thursday.
- A strong dollar, rising oil prices and renewed US-Iran strikes contributed to the fall.
- Silver futures also slipped 2.4
Gold prices slumped to a two-month low on Thursday, as renewed strikes between the US and Iran drove oil prices higher and strengthened the dollar.
Spot prices were trading at their lowest point since March 26, as per CNBC.
Spot gold was trading 1.5% lower at $4,389.99 per ounce at 9:02 am GMT, as per Reuters. US gold futures for June slid 1.5% to $4,387.70.
Silver was also under pressure on Thursday, with spot prices down 2.4% to $72.85 an ounce. Silver futures also slipped 2.4% to stay above the $73 mark.
Gold and silver both enjoyed record-smashing rallies last year, jumping 66% and 135%, respectively, over the course of 2025. However, the precious metals have seen more volatility in trade this year.
Gold has been under pressure since the start of the US-Iran war in late February. The effective closure of the Strait of Hormuz has led to a jump in Brent crude prices, increased inflation, and sparked concerns of a rate hike.
With fresh hostilities reported between the US and Iran, the dollar rose to a one-week high, meaning greenback-priced bullion became more expensive for investors holding other currencies.
UBS had recently scaled back its year-end price target for gold from $5,900 to $5,500 per ounce. However, strategists at the brokerage recently doubled down on their bullish stance on gold in a note on Thursday. They stated that while gold has been under pressure during the conflict in Iran due to worries that high energy prices will result in a tighter monetary policy by central banks like the Federal Reserve, the precious metal should be able to regain momentum as rate hike expectations reduce.
Mark Haefele, UBS Global Wealth Management chief investment officer, stated that they remain positive on the outlook for gold and continue to view the metal as a source of portfolio diversification.
“Although near-term performance may remain sensitive to U.S.-Iran headlines, energy prices, U.S. yields, and the dollar, the medium-term case remains supported by central bank demand, reserve diversification, elevated global debt burdens, and the prospect of easier Fed policy later in the year,” he added.
The fall in gold prices, jump in crude oil prices, and a strong dollar have fuelled expectations of a rate hike. Later Thursday, the US personal consumption expenditure price index for April, the Federal Reserve's preferred gauge of inflation, will be published, offering cues on the central bank's monetary policy path.
