TLDR
- Gold futures fell 0.7–0.9% Tuesday after Iranian attacks on commercial ships near the Strait of Hormuz
- Spot gold dropped to $4,121.25/oz; silver slid 2.1% and platinum fell 1.2%
- The dollar strengthened on inflation fears tied to potential energy disruptions
- Markets await minutes from the Federal Reserve’s June meeting for interest rate guidance
- New Fed Chair Kevin Warsh has reaffirmed the central bank’s 2% inflation target
Gold prices fell sharply on Tuesday after reports of Iranian attacks on two commercial vessels near the Strait of Hormuz raised fresh concerns about energy supply disruptions and inflation.
Spot gold dropped 1% to $4,121.25 an ounce, while gold futures slid 0.9% to $4,132.15. Earlier in European trading, New York gold futures were down 0.7% at $4,138.50 a troy ounce.
Other precious metals followed gold lower. Spot silver fell 2.1% to $60.76 an ounce, and spot platinum dropped 1.2% to $1,614.72 an ounce.
The Hormuz attacks pushed oil prices higher, stoking fears that energy inflation could stay elevated. That kept the dollar strong, which tends to weigh on metal prices.
🇮🇷 🇶🇦 The IRGC fired missiles at commercial ships in the Strait of Hormuz, hitting TWO vessels, per a U.S. official.
-The IRGC launched at least two missiles at commercial ships transiting the strait, a U.S. official confirms
-Both ships were hit and suffered significant… pic.twitter.com/vmgdtFV5bq
— Mario Nawfal (@MarioNawfal) July 7, 2026
The moves reversed strong gains from the previous week, when softer-than-expected U.S. jobs data had briefly lifted gold and pushed the dollar down from 13-month highs.
Fed Minutes in Focus
Markets are now watching closely for the minutes from the Federal Reserve’s June meeting, due out this week. Investors hope the release will offer clearer signals on where interest rates are headed.
New Fed Chair Kevin Warsh has said the central bank remains committed to bringing inflation back to its 2% annual target. His comments have kept markets cautious about the possibility of another rate hike later this year.
Analysts at Saxo Bank said gold is stuck in a holding pattern. “Bullion remains rangebound as it attempts to shift from capitulation to consolidation,” they said, adding that short-dated U.S. yields still point to a possible rate hike risk.
Higher rates make gold less attractive because it pays no interest or dividends. When yields rise, investors tend to move toward bonds and other income-generating assets instead.
Gold’s Rough Year
Gold hit record highs in January but has struggled ever since. Rate fears have kept investors cautious about holding non-yielding assets, and the metal has given back most of its early 2026 gains.
The yellow metal has also lost some of its safe haven appeal this year. Normally, gold rises during times of uncertainty, but persistent inflation worries and a firm dollar have limited any recovery.
Saxo Bank analysts noted that a further easing in rate expectations would be needed to support a more lasting rebound in gold prices.
With the Fed minutes approaching and tensions near the Strait of Hormuz still unresolved, traders are unlikely to make big moves until there is more clarity on both fronts.
As of Tuesday, spot gold stood at $4,121.92, down 1.04% on the day.
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