Gold retreats amid stronger dollar, rising oil prices

April 13, 2026 (MLN):  Gold prices slipped to their lowest level in nearly a week on Monday, weighed down by a firmer U.S. dollar, while a sharp rally in oil prices triggered by the breakdown of U.S.–Iran peace negotiations stoked inflation concerns and reduced expectations for Federal Reserve rate cuts this year.

Currently, spot gold is down 0.40% to $4,726.9 an ounce as of [11:27 am] PST, according to data reported by Mettis Global.

The dollar rose about 0.4%, adding further pressure on bullion, while crude oil surged above $100 per barrel amid geopolitical tensions.

Reports that the U.S. Navy is preparing a blockade of the Strait of Hormuz following the failed diplomatic talks raised fears of potential disruptions to Iranian oil exports.

Gold has now dropped more than 11% since the outbreak of the U.S.-Israeli conflict with Iran on February 28, according to CNBC.

Market participants have largely scaled back expectations for any Federal Reserve rate cuts this year, as rising energy costs are expected to fuel inflation and limit the central bank’s ability to ease policy.

Earlier in the year, traders had priced in as many as two rate cuts.

While gold is traditionally seen as an inflation hedge, higher interest rates tend to reduce its appeal since it does not yield interest.

Additionally, a stronger dollar makes the metal more expensive for international buyers.

Among other precious metals, silver fell 2.2% to $74.23 per ounce, platinum slipped 0.5% to $2,034.95, while palladium rose 1% to $1,535.77.

Copyright Mettis Link News