Gold reached a low not seen in over six months on Thursday, as new U.S. military actions in Iran propelled oil prices upward, intensifying worries regarding inflation and the persistence of elevated interest rates. Spot gold experienced a decline of 0.2%, trading at $4,063.87 per ounce as of 0043, following a drop to its lowest level since November 21 earlier in the day. U.S. gold futures for August delivery experienced a decline of 1.1%, settling at $4,086.50.

The United States initiated a new series of strikes against various targets in Iran overnight, as reported by the U.S. military on Wednesday. This action followed President Donald Trump’s warning of further attacks should a peace agreement not be reached. Oil prices surged over $2 on Thursday, as Iran announced the closure of the Strait of Hormuz in response to the U.S. strikes. Elevated crude oil prices can accelerate inflation, and while gold is perceived as a hedge against inflation, higher interest rates typically exert downward pressure on the non-yielding metal.

Data indicated that U.S. consumer inflation accelerated at its most rapid rate in three years during May, driven by rising prices for energy products due to the ongoing conflict in the Middle East. This development provides further justification for the Federal Reserve to maintain interest rates at their current levels through 2027. Markets are anticipating the release of the May U.S. Producer Price Index data later today, which will provide additional insights into the Federal Reserve’s monetary policy stance.

Ivory Coast’s gold production is projected to increase to 62 metric tonnes by 2026, rising from 59.33 tonnes in 2025, driven by the expansion of existing mining operations, according to the director general of mines in the West African nation, as reported. Spot silver declined by 0.9% to $63.15 per ounce, platinum decreased by 0.6% to $1,655.06, whereas palladium experienced an increase of 1% to $1,225.25.