TLDR
- Bullion prices slipped more than 1% Thursday, settling around $4,688–$4,703 per ounce
- Ongoing US-Iran tensions at the Strait of Hormuz have propelled crude oil beyond $103 per barrel
- Escalating energy costs are amplifying inflation concerns, weighing on non-interest-bearing assets
- A firmer US dollar is increasing gold’s cost for international purchasers
- Bullion has declined approximately 11% since hostilities commenced two months ago
Precious metals experienced downward pressure Thursday as a combination of dollar strength and climbing crude oil prices dampened investor appetite for bullion. Spot gold retreated approximately 1% to hover near the $4,700 per ounce mark, with futures contracts similarly posting losses.
The pullback emerges against the backdrop of the ongoing US-Iran confrontation, now entering its second month, which continues to create volatility in global energy markets. Crude oil has rebounded above the $103 per barrel threshold this week amid growing anxiety over potential supply chain interruptions at the Strait of Hormuz.
This critical maritime passage along Iran’s southern border serves as a conduit for approximately 20% of global oil shipments.
Tehran has persisted in restricting access to the waterway, while Washington has deployed naval forces to enforce a blockade against Iranian vessels. Additional escalation occurred this week when Iranian patrol boats opened fire on merchant ships, sustaining elevated regional tensions.
President Trump announced an extension to the ceasefire originally brokered on April 7, declaring it would remain effective indefinitely pending Iran’s submission of fresh peace terms. Iranian officials have indicated no immediate intention to pursue diplomatic channels.
Tehran maintains that Washington must dismantle its naval blockade prior to any negotiations. The United States counters that Iran must fully reopen the Strait of Hormuz first. The stalemate persists with neither party willing to yield.
Why Rising Oil Hurts Gold
Escalating oil prices amplify expectations for inflation. When inflationary pressures mount, monetary authorities typically maintain elevated interest rates or implement further tightening measures.
Since gold generates no yield through interest or dividends, it typically struggles during periods of rising or elevated rates. This fundamental relationship has exerted sustained downward pressure on precious metals throughout the conflict.
Gold has now surrendered roughly 11% of its value since hostilities erupted two months ago.
The greenback also gained ground this week, positioning itself for its first weekly advance in four weeks. Dollar appreciation makes gold more costly for holders of foreign currencies, thereby dampening international demand.
Jake Behan, Head of Capital Markets at Direxion, observed that certain market participants are redirecting attention from geopolitical concerns toward quarterly corporate performance. He highlighted renewed enthusiasm for AI infrastructure investments as a catalyst for near-term risk-taking behavior.
Other Precious Metals Also Fall
Silver experienced substantial losses, declining between 2.7% and 4.3% Thursday to settle near the $74–$75 per ounce range. Platinum retreated 3.5% to approximately $2,005 per ounce. Palladium similarly posted declines.
Rhona O’Connell, head of market analysis at StoneX, indicated the precious metals sector will “remain cautious and volatile.” She emphasized that institutional trading firms are hesitant to establish significant positions given the unpredictable geopolitical landscape.
Iran’s persistent obstruction of the Strait of Hormuz alongside continued US naval deployment in the region remain the principal drivers sustaining elevated energy market volatility and inflation risks as of April 23, 2026.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
