Gold Price Slip to Over 6-Month Low as Rising Oil Prices Fuel Inflation Concerns

Gold price declined on June 11, 2026, Thursday, touching their lowest level in more than 6 months as renewed geopolitical tensions in the Middle East pushed crude oil prices higher, raising concerns over inflation and the outlook for interest rates. 

Gold Prices Extend Decline 

Spot gold slipped 0.2% to $4,063.87 per ounce after falling to its lowest level since November 21 earlier in the session. Meanwhile, U.S. gold futures for August delivery declined 1.1% to $4,086.50 per ounce. 

The decline in bullion prices came as investors assessed the impact of higher energy prices on global inflation and monetary policy expectations. 

U.S. Strikes on Iran Push Oil Prices Higher 

Oil price rose by more than $2 per barrel after the United States carried out a fresh round of strikes against multiple targets in Iran overnight. The move followed President Donald Trump's statement that additional attacks could follow if a peace agreement is not reached. 

Iran also announced the closure of the Strait of Hormuz, adding to concerns over global energy supplies and supporting crude oil prices. 

Inflation Concerns Weigh on Gold 

Higher crude oil prices can increase inflationary pressures by raising energy costs across the economy. While gold is traditionally viewed as a hedge against inflation, expectations of elevated interest rates can reduce its appeal as the metal does not offer any yield. 

Recent U.S. inflation data showed consumer prices increased at their fastest pace in 3 years during May, supported by higher energy prices linked to the Middle East conflict. The data has reinforced market expectations that the U.S. Federal Reserve could keep interest rates unchanged for an extended period. 

Investors are now awaiting the release of the U.S. Producer Price Index data later in the day for additional signals on the Federal Reserve's policy outlook. 

Read More: Gold ETFs Witness ₹725.04 Crore Net Outflow in May 2026; Silver ETFs See Massive ₹2,133 Crore Inflow 

Other Precious Metals and Gold Supply Update 

Among other precious metals, spot silver price fell 0.9% to $63.15 per ounce, while platinum declined 0.6% to $1,655.06 per ounce. Palladium, however, gained 1% to $1,225.25 per ounce. 

Separately, Ivory Coast expects its gold production to rise to 62 metric tons in 2026 from 59.33 metric tons in 2025 as existing mines expand operations. 

Conclusion 

Gold prices remained under pressure as higher oil prices, and inflation concerns increased expectations that interest rates could stay elevated for longer. Market participants will closely watch upcoming U.S. economic data for further direction on monetary policy and precious metal prices. 

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