Mucahithan Avcioglu
16 July 2026•Update: 16 July 2026
Gold fell below $4,000 per ounce on Thursday, while silver posted a sharper decline, as escalating attacks in the Middle East drove oil prices higher and revived concerns over inflation and the outlook for US interest rates.
Gold was last down 1.9% to $3,983 as of 1310GMT, slipping below the psychologically important $4,000-per-ounce level.
Silver fell 3.6% to $55.67 per ounce, facing additional pressure from its extensive industrial use and concerns that higher energy costs could weigh on economic activity.
The declines came after the US carried out additional strikes against Iranian targets on Wednesday, prolonging hostilities that have disrupted energy supplies and pushed oil prices sharply higher this week.
US President Donald Trump said Tehran had signaled a willingness to resume negotiations, though uncertainty remained elevated after an interim peace agreement reached last month effectively unraveled.
Although precious metals are generally considered safe-haven assets during geopolitical turmoil, the surge in energy prices has fueled expectations that inflation could accelerate again.
Higher inflation could prompt the US Federal Reserve to keep interest rates elevated for longer or consider further rate hikes, reducing the appeal of non-yielding assets such as gold and silver.
Precious metals found some support from softer-than-expected US inflation data released this week.
US producer prices unexpectedly declined in June for the first time in nearly a year, largely due to lower energy costs, following a weaker-than-expected consumer inflation report.
