Gold Dips Amid Middle East Tensions and Inflation Pressures

2026-05-12 12:55 By Joana Ferreira 1 min. read

Gold fell below $4,690 an ounce on Tuesday amid heightened Middle East uncertainty and the prolonged shutdown of the Strait of Hormuz, which pushed oil prices higher and kept inflation risks in focus.

A rebounding dollar also weighed on bullion.

US President Donald Trump stated that the US-Iran ceasefire was on "massive life support" after rejecting Tehran’s latest peace proposal, raising concerns that the critical shipping route could remain blocked for an extended period.

Reports indicate Trump is set to meet with his national security team to discuss a potential restart of military operations and revisit plans to escort commercial ships through the Strait.

Meanwhile, US inflation accelerated to 3.8% in April, the highest since May 2023 and above forecasts of 3.7%, while the core rate also exceeded expectations at 2.8%.

The data complicates the Federal Reserve’s outlook, with traders now pricing in over a 70% chance of a rate hike by April 2027 and ruling out cuts through year-end.



News Stream
Gold Dips Amid Middle East Tensions and Inflation Pressures
Gold fell below $4,690 an ounce on Tuesday amid heightened Middle East uncertainty and the prolonged shutdown of the Strait of Hormuz, which pushed oil prices higher and kept inflation risks in focus. A rebounding dollar also weighed on bullion. US President Donald Trump stated that the US-Iran ceasefire was on "massive life support" after rejecting Tehran’s latest peace proposal, raising concerns that the critical shipping route could remain blocked for an extended period. Reports indicate Trump is set to meet with his national security team to discuss a potential restart of military operations and revisit plans to escort commercial ships through the Strait. Meanwhile, US inflation accelerated to 3.8% in April, the highest since May 2023 and above forecasts of 3.7%, while the core rate also exceeded expectations at 2.8%. The data complicates the Federal Reserve’s outlook, with traders now pricing in over a 70% chance of a rate hike by April 2027 and ruling out cuts through year-end.
2026-05-12
Gold Pulls Back on Inflation Worries
Gold fell toward $4,700 an ounce on Tuesday, reversing gains from earlier in the session as heightened uncertainty in the Middle East and the prolonged shutdown of the Strait of Hormuz pushed oil prices higher and kept inflationary risk in focus. Bullion also came under pressure from a rebounding dollar. President Donald Trump said the US-Iran ceasefire was on “massive life support” after rejecting Tehran’s latest peace proposal, intensifying fears that the critical shipping route could remain effectively blocked for a prolonged period. Reports further suggested that President Trump is expected to meet with his national security team to consider a potential restart of military operations, while also revisiting plans to escort commercial ships through Hormuz. At the same time, investors awaited the latest US consumer inflation data for clues on how the Iran conflict has affected price pressures.
2026-05-11
Gold Nears Three-Week High
Gold edged up to $4,730 an ounce on Monday, recovering from early losses to reach its highest level in nearly three weeks, as investors awaited progress in US-Iran negotiations. President Donald Trump swiftly rejected Iran’s response to a peace proposal, calling it “totally unacceptable” and raising the risk of renewed conflict, while weekend strikes across the Middle East further threatened a fragile ceasefire established in early April. With Washington and Tehran still struggling to reach a diplomatic resolution, the Strait of Hormuz remains effectively blocked, keeping oil prices elevated and stoking inflation concerns. Investors have scaled back expectations for two US rate cuts this year, with forecasts now divided between limited easing and no cuts at all in 2026. Markets also turned their attention to Tuesday’s US CPI data and Trump’s two-day visit to China this week, where he is set to meet President Xi Jinping to discuss Iran, Taiwan, AI, and nuclear weapons.
2026-05-11