Gold under pressure as U.S. strikes on Iran lift oil

July 08, 2026 (MLN): Gold prices fell on Wednesday, as renewed U.S. military action against Iran fanned fears of inflation and higher interest rates, even as the same tensions lifted oil and the dollar ahead of the Federal Reserve's June meeting minutes.

Currently, spot gold is down 0.92% to $4,122.91 an ounce as of [09:45 am] PST, according to data reported by Mettis Global.

The U.S. military carried out a fresh round of strikes on Iran on Tuesday and withdrew a licence permitting the country to export oil, after three tankers came under projectile attack in the Strait of Hormuz, according to CNBC.

U.S. crude prices surged nearly 5%, Treasury yields climbed, and the dollar held near its weekly high against major currencies as the strikes threatened an already fragile ceasefire.

Traders raised the probability of a Federal Reserve rate hike in September to more than 63%, according to the CME FedWatch tool, up from around 57% a day earlier.

Market participants are also awaiting the minutes of the Federal Open Market Committee's June 16-17 meeting, due later in the day, for further signals on the rate trajectory under Fed Chair Kevin Warsh.

Higher interest rates weigh on gold, a non-yielding asset, even though the metal is typically viewed as an inflation hedge.

Elsewhere in the metals complex, platinum eased 0.3% to $1,635.45 and palladium slipped 0.6% to $1,268.64, while spot silver bucked the trend, climbing 0.8% to $60.47 per ounce.

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