Gold drops declined early Wednesday as the dollar and oil climbed on fresh U.S. strikes against Iran. Earlier in the trading day, President Trump announced the interim accord with Iran to end the war is “over.” Gold fell over 1% in early Wednesday trading.
Investors were awaiting the release of the minutes of last month’s Federal Reserve policy meeting later Wednesday for signals on the central bank’s thinking regarding interest rates and the state of the economy to determine further direction.
August gold futures fell 0.2% Tuesday to settle at $4,157.40 an ounce on Comex, though the front-month contract rallied 0.8% in the first two days of the week. Bullion slid 12% in June after dropping 0.8% in May and losing 1% in April. It decreased 7% in the first half of 2026 after rallying 64% last year. The August contract is currently down $72.30 (-1.74%) an ounce to $4085.10 and the DG spot price is $4071.60.
The U.S. attacked Iran early Wednesday in retaliation for what it said were Iranian strikes against three ships in the Strait of Hormuz, the key oil waterway. Washington also revoked a waiver allowing Iran to openly sell crude oil in global markets. Iran subsequently retaliated with strikes targeting Bahrain and Kuwait.
Since the U.S.-Israeli action against Iran began in late February, tensions have caused gold prices to drop while signs of détente have triggered rallies. Wednesday’s actions may risk negotiations for a permanent accord to end the fighting. The two sides were in the midst of an interim halt to enable talks.
The Mideast conflict has triggered an escalation in inflation, prompting speculation that the Fed will likely have to raise interest rates this year. At the start of 2026, most investors were anticipating rate cuts.
The Fed last month held interest rates steady at 3.5% to 3.75%, as expected, but signaled growing support for a rate hike in 2026. Minutes of that meeting are due out Wednesday and are likely to be closely parsed by market players.
Over 69% of investors tracked by the CME FedWatch Tool are betting on interest rates staying unchanged in July, while over 65% believe there will be a rate hike in September. The Fed has kept interest rates unchanged this year after three previous rate cuts.
Front-month silver futures dropped 1.6% Tuesday to settle at $61.33 an ounce on Comex, though the September contract gained 0.4% in the first two days of the week. The most-active contract touched a record above $115 in January. Silver declined 21% in June after gaining 2.5% in May and losing 1.2% in April. It lost 15% in the first half of 2026 after rising 141% last year. The September contract is currently down $2.295 (-3.74%) an ounce to $59.035 and the DG spot price is $58.55.
Spot palladium increased 0.6% Tuesday to $1,287.50 an ounce and has climbed 1% so far this week. Palladium dropped 11% last month after losing 12% in May and rising 3.2% in April. It retreated 25% in the first half of 2026 after rising 74% last year. Currently, the DG spot price is down $57.80 an ounce to $1230.50.
Spot platinum rose 1.5% Tuesday to $1,661.60 an ounce and is up 2.5% this week. Platinum tumbled 19% in June after dropping 3.2% in May and gaining 1.3% in April. Platinum slid 23% in the first half of 2026 after increasing 122% in 2025. The DG spot price is currently down $72.50 an ounce to $1587.50.
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