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New York, June 22, 2026 – Gold markets opened the week under pressure as renewed threats of U.S. military action against Iran by President Donald Trump unsettled investors and weighed on safe-haven demand.
Prices dipped to $4,155.80 per ounce in early Singapore trading on June 22, extending a three week losing streak that has already erased more than 20 percent of gold’s value since late February.
Geopolitical Flashpoints
The fragile ceasefire in Lebanon was jolted after Iran accused Israel of violations, prompting Tehran to briefly suspend negotiations before resuming talks.
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The uncertainty deepened when Trump reiterated his willingness to strike Iran, despite a memorandum of understanding signed last week that opened a 60-day negotiation window.
The heightened risk of conflict in the Middle East has pushed oil prices higher, amplifying inflationary pressures across global markets.
Gold’s decline reflects a complex interplay of geopolitical risk and monetary policy expectations.
While investors traditionally flock to gold during crises, rising interest rates have eroded its appeal.
The Bloomberg Dollar Spot Index climbed 0.1 percent, adding further pressure on commodities priced in dollars.
Other precious metals also struggled.
Silver fell 0.2 percent to $64.78 per ounce after a steep 4.6 percent weekly drop.
Platinum remained little changed, palladium edged higher, offering a rare bright spot in the sector.
Inflation Concerns and Fed Policy
Energy market volatility is feeding inflation fears, particularly as disruptions around the Strait of Hormuz threaten global supply chains.
Federal Reserve Chairman Kevin Warsh, in his first policy meeting, struck a hawkish tone, signaling that rate hikes may be necessary to contain price pressures.
Investors are now bracing for Thursday’s release of the U.S. PCE price index, a key inflation gauge that could shape the Fed’s next move.
The combination of geopolitical instability, rising energy costs, and a stronger dollar has created a challenging environment for gold.
Analysts warn that unless tensions ease or inflation accelerates beyond expectations, bullion may continue to face downward pressure.
For now, traders remain caught between the traditional safe haven appeal of gold and the reality of tightening monetary conditions.
