Gold prices fall sharply in global markets

Global oil prices have risen as the United States and Iran have not made progress in peace talks. As a result, gold prices have fallen in the international market on fears of prolonged inflation. Reuters News. Spot gold prices fell 1.2 percent to $4,657.89 per ounce at 12:07 pm Bangladesh time today (May 11). At the same time, US gold futures for June delivery fell 1.4 percent to $4,665.70.
US President Donald Trump rejected Iran’s peace talks offer on Sunday. This dashed hopes of a quick end to the nearly 10-week conflict. The conflict has caused widespread damage in Iran and Lebanon, disrupted shipping in the Strait of Hormuz and destabilized global energy markets. “The hope of an immediate peace deal has been dashed,” said Tim Waterer, chief analyst at market analyst firm KCM Trade. At the same time, the gold market is also under pressure as crude oil prices have started to rise again. The virtual closure of the Strait of Hormuz has reduced global energy supplies, which has led to an increase in oil prices.
According to analysts, the increase in crude oil prices could increase inflation worldwide. This may require central banks to maintain high interest rates for a longer period. Although gold is generally seen as a safe investment against inflation, high interest rates have a negative impact on non-interest-bearing assets like gold. The US Federal Reserve said in its semi-annual report released on Friday that the Iran war and the resulting shock to oil supply and prices have now become one of the main concerns for global financial stability.
Meanwhile, investment bank Goldman Sachs has also suspended its interest rate cut forecast. The company said it now expects the US Federal Reserve to cut interest rates in December 2026 and March 2027. They had previously forecast interest rate cuts in September and December this year. The change came as high energy prices continued to push up inflation.
Investors are now looking ahead to the US consumer price index (CPI) report for April this week, which could provide fresh clues about the Fed’s future monetary policy. On the other hand, the China Gold Association said that China’s gold production in the first quarter of 2026 fell compared to the same period the previous year. This situation was caused by the temporary shutdown of production at some gold smelters due to safety inspections.
Tim Waterer said, “In the short and medium term, gold prices are likely to fluctuate between $4,400 and $4,800, as there is a ceasefire but no peace agreement yet.” Meanwhile, in the international market, prices of other precious metals, along with gold, also fell. Spot silver prices fell 0.2 percent to $80.13 an ounce. Platinum prices fell 1.2 percent to $2,29.95 and palladium prices fell 0.7 percent to $1,481.9.