Key Highlights
- Bullion prices declined more than 1% Thursday, settling around $4,688–$4,703 per ounce
- Ongoing tensions between Washington and Tehran over Hormuz are pushing crude beyond $103 per barrel
- Elevated energy costs are amplifying inflation concerns, creating headwinds for non-interest-bearing assets
- Dollar strength is reducing gold’s appeal to international purchasers
- Precious metals have surrendered approximately 11% since hostilities commenced two months ago
Precious metal valuations declined Thursday as investors grappled with a strengthening greenback and escalating energy costs. Spot bullion retreated approximately 1%, trading in the vicinity of $4,700 per ounce, while futures contracts followed suit.
The decline arrives as the Washington-Tehran confrontation enters its eighth week, continuing to create turbulence across global energy markets. Crude prices have climbed back beyond $103 per barrel during recent trading sessions, propelled by concerns surrounding potential supply interruptions at the critical waterway.
The Strait of Hormuz represents a strategic chokepoint situated along Iran’s southern coastline. Approximately twenty percent of global petroleum shipments traverse this narrow passage.
Tehran has maintained its blockade of the strategic waterway, while Washington has sustained its naval presence monitoring Iranian vessels. Iranian patrol boats opened fire on commercial shipping earlier this week, perpetuating the volatile atmosphere.
President Trump announced an extension of the ceasefire initially established on April 7, indicating the pause would continue without a fixed endpoint while his administration awaits Tehran’s next diplomatic submission. Iranian officials have signaled they have no immediate intention of returning to the negotiating table.
Tehran insists Washington must withdraw its blockade before any diplomatic engagement can commence. The United States counters by demanding complete restoration of passage through the Strait of Hormuz. The two nations remain locked in a stalemate.
Energy Costs Create Headwinds for Precious Metals
Escalating oil prices amplify expectations for broader price increases across the economy. When inflationary pressures mount, monetary authorities typically maintain elevated borrowing costs or implement additional tightening measures.
Bullion generates no yield or dividend payments, making it less attractive during periods of elevated or ascending interest rates. This fundamental relationship has created persistent downward pressure on the yellow metal throughout the duration of the conflict.
Gold has surrendered roughly 11% of its value since hostilities commenced two months earlier.
The American currency also appreciated during the current week, positioning itself for its first positive weekly performance in a month. Dollar strength diminishes bullion’s affordability for purchasers transacting in alternative currencies, dampening overall demand.
Jake Behan, Head of Capital Markets at Direxion, observed that certain market participants are now redirecting attention from the geopolitical situation toward quarterly corporate performance reports. He highlighted renewed enthusiasm for artificial intelligence infrastructure investments as a catalyst for near-term risk-taking behavior.
Broader Precious Metals Complex Experiences Weakness
Silver experienced pronounced weakness, declining between 2.7% and 4.3% Thursday to settle around $74–$75 per ounce. Platinum retreated 3.5%, trading near $2,005 per ounce. Palladium similarly posted losses.
Rhona O’Connell, head of market analysis at StoneX, indicated the precious metals sector will “remain cautious and volatile.” She noted that institutional trading firms are hesitant to establish substantial positions given the unpredictable geopolitical landscape.
Tehran’s ongoing blockade of the Strait of Hormuz combined with Washington’s naval deployment in surrounding waters continue to represent the primary drivers sustaining elevated energy market tensions and inflation risks as of April 23, 2026.
