No relief for gold, war tensions linger

May 13, 2026 (MLN): Gold prices fell Wednesday as a combination of hotter-than-expected inflation data and ongoing instability in the Middle East dampened investor appetite for the metal.

Currently, spot gold is down 0.53% to $4,701.94 an ounce as of [12:03 pm] PST, according to data reported by Mettis Global.

April's U.S. consumer price index came in stronger than forecast, marking the biggest annual increase in three years and all but extinguishing expectations of Federal Reserve interest rate reductions in the near term.

Markets have now shifted to pricing in roughly a 30% probability of a rate hike by December, based on data from CME Group's FedWatch tool, CNBC reported.

On the geopolitical front, President Trump indicated that he does not anticipate needing Beijing's involvement to broker a resolution to the Iran conflict.

That statement did little to reassure markets, however, as prospects for a durable ceasefire continued to fade and Iran strengthened its hold over the strategically vital Strait of Hormuz.

Adding further pressure to the precious metals complex, India announced a sharp increase in import duties on gold and silver raising tariffs from 6% to 15% in a bid to reduce dependence on foreign metals and stabilize its foreign exchange reserves.

Other metals were mixed. Silver edged up 0.2% to $86.71 per ounce, briefly touching its strongest level in over two months earlier in the session.

Platinum declined 0.8% to $2,109.53, while palladium dipped 0.2% to settle at $1,487.47.

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