KRASNOYARSK, RUSSIA – JUNE 16: A view of the production of silver granules and gold ingots in Krasnoyarsk, Russia on June 16, 2026. Krastsvetmet (Krasnoyarsk Non-Ferrous Metals Plant named after V.N. Gulidov) is one of the world’s largest producers of eight precious metals and their products. It processes all types of mineral and secondary raw materials. Krastsvetmet’s products meet international standards and are included in ‘Good Delivery’ lists (high delivery quality) on international markets. (Photo by Alexander Manzyuk/Anadolu via Getty Images)
Anadolu | Anadolu | Getty Images
Gold prices slid on Thursday, extending losses for a third straight session to hit a more-than-one-year low, as oil prices climbed on fading hopes for peace in the Middle East that spurred fears of higher inflation and elevated interest rates.
Spot gold dipped 2.7% to $3,881.70 per ounce by 1:36 p.m. ET, having touched its lowest level since October 2025 earlier in the session.
U.S. gold futures for December delivery fell 2.8% to $3,888.70 per ounce.
U.S. President Donald Trump said on social media on Thursday that the U.S. did not need a deal with Iran, quashing hopes of a deal to end the conflict, which started in late February with U.S.-Israeli strikes on Iran and has spread across the Middle East.
“If crude oil prices spike higher on this news, that’s negative for gold from an inflation perspective,” said Jim Wyckoff, a market analyst at American Gold Exchange.
Brent crude rose over 2%, fanning inflationary concerns and expectations that the Federal Reserve could keep interest rates higher for longer.
A hot U.S. inflation reading on Tuesday, hawkish remarks from Fed officials this week and a U.S. dollar index rally to a near 19-month high “are working to press the gold market lower,” Wyckoff added.
Markets see an 85% chance of a 25-basis-point rate hike in December, while the probability of a larger 50-basis-point move also increased.
Higher interest rates reduce the appeal of non-yielding bullion, while a stronger dollar makes gold costlier for overseas buyers.
Meanwhile, Nvidia CEO Jensen Huang’s exit stirred concerns about the future of the AI heavyweight and could have far-reaching consequences for US chip export policy.
The news could be impacting gold “maybe in some ancillary fashion…due to just generalized volatility, but I would not draw a direct correlation,” David Meger, director of metals trading at High Ridge Futures, said.
Investors now await the U.S. producer price index data due on Friday for monetary policy outlook.
Spot silver fell 2.8% to $50.24 per ounce after touching its lowest level since November 4 earlier in the session, while spot platinum lost 1.1% to $1,520.30 after hitting its lowest since November 6. Spot palladium dropped 2.8% to $998.57, a day after reaching its highest level since October 22.
