Gold prices declined on Thursday following a dip to a one-week low in the prior session, as U.S. President Donald Trump’s announcement that an interim agreement to resolve the conflict with Iran was “over” rekindled worries regarding elevated inflation and interest rates. Spot gold declined by 0.3% to $4,066.24 per ounce as of 0105, following a drop to its lowest level since July 1 on Wednesday. U.S. gold futures for August delivery were down 0.1% at $4,077. The U.S. military announced on Wednesday its initiation of new strikes on Iran, with the objective of ensuring the vital Strait of Hormuz remains accessible for maritime traffic. This development followed remarks from Trump, who stated that the memorandum of understanding established to resolve the conflict was “over.”

Oil prices continued to rise following a nearly 5% increase on Wednesday, as the dollar and stock markets experienced a decline in reaction to the recent escalation in the U.S.-Iran conflict. Renewed hostilities in the Middle East highlighted the rapidity with which the oil market can rekindle concerns regarding inflation and volatility. Concern about high inflation also mounted at the U.S. central bank’s meeting last month, as officials followed Federal Reserve Chairman Kevin Warsh’s lead to a more stripped-down policy statement even amid concerns that price increases were broadening and might require interest rate hikes.

Gold is often regarded as a safeguard against inflation; however, elevated interest rates typically exert downward pressure on this non-yielding asset. The International Monetary Fund on Wednesday revised its 2026 global growth forecast downward to 3.0%. Bank of America announced a reduction in its 2026 average gold forecast by 14% to $4,360 an ounce, attributing this adjustment to a more hawkish Federal Reserve.

Tanzania’s central bank has acquired approximately 28 metric tonnes of gold in the last 18 months to enhance its international reserves and provide support for the shilling currency, according to Governor Emmanuel Tutuba. India’s restrictions on silver imports have resulted in shortages within the largest market for the precious metal, leading to premiums reaching their highest levels in six months, even in the face of weaker-than-usual demand. Elsewhere, spot silver eased 0.3% to $58.13 per ounce, while platinum rose 0.4% to $1,585.11 and palladium gained 0.4% to $1,218.