Gold falls amid rising oil prices and higher US dollar

Gold hits seven-week low; silver follows suit and records a nearly 5 percent loss.

Spot gold prices fell 3.3 percent, reaching a new seven‑week low of $4,146.51 per ounce on Monday.

Even as gold historically serves as an inflation hedge, higher interest rates have weakened its appeal, prompting investors to favor income‑generating assets.

“While most households will not experience noticeable effects immediately, gold has suffered a setback—investors adopting the metal are feeling the loss, particularly amid current high inflation levels,” said Sherif Othman, CEO of Poise Investment Advisors, a Maryland‑based firm, in an interview with Al Jazeera.

“Since gold does not generate interest, ascending Treasury yields draw capital away and depress its value,” Othman added.

The Federal Reserve recently lifted benchmark rates by 25 basis points, with analysts expecting further hikes in the coming months.

The U.S. dollar has remained near a two‑month high, while oil prices rose roughly 3 percent after President Donald Trump refused an Iranian proposition to resolve the conflict and reopen the Strait of Hormuz.

Such dynamics have led many policymakers to warn that inflation risks stay elevated and that rates may need to continue climbing, a sentiment echoed by Cleveland Fed President Beth Hammack.

James Wyckoff, a U.S. gold market analyst at the American Gold Exchange, summarized the sentiment: “Higher Treasury yields together with a strong dollar are creating a perfect storm that is pushing precious‑metal prices sharply lower.”

The broader market saw other commodities slip: spot silver slipped 4.7 percent to $61.27 per ounce, while platinum fell 2.9 percent to $1,726.30 and palladium dropped 4.4 percent to $1,211.45.

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