Gold Prices Slip as Oil Fears Shake Fed Outlook Again

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As trading opened on Monday, May 11, 2026, gold prices retreated after stalled U.S.-Iran peace talks lifted oil markets and revived inflation concerns across global markets.

Gold Prices Sink as Oil Shock Clouds Rate-Cut Hopes

The prices of gold dropped sharply Monday as rising crude costs rattled investors already bracing for stubborn inflation and delayed Federal Reserve easing. Spot gold slipped 1% to $4,667.99 per ounce, while U.S. futures lost 1.1% to $4,677.80.

Oil Surge Rekindles Inflation Pressure on Gold

Fresh doubt over U.S.-Iran negotiations pushed oil prices higher after the Strait of Hormuz remained largely disrupted, tightening global supply chains. The stronger dollar also pressured gold prices by making bullion costlier for overseas buyers.

A Federal Reserve stability report highlighted the conflict’s growing threat to energy markets, while Goldman Sachs delayed its projected Fed rate cuts to December 2026 and March 2027. Investors are now awaiting upcoming U.S. inflation data for clues on monetary policy direction.