Gold slid early Monday while the dollar strengthened as the Iran war ramped up again over the weekend, resulting in the renewed closure of the critical Strait of Hormuz. The price of platinum joined gold in touching one-week lows a little earlier in the session.
The U.S. Navy seized an Iranian-flagged ship near the strait on Sunday, ramping up tensions just as President Donald Trump indicated that ceasefire talks were set to resume again in Pakistan. The Pentagon indicated that the ship had tried to evade the U.S. naval blockade near the strait, but Iran called it a ceasefire violation.
Earlier, Trump had said that negotiators would head for Pakistan on Monday, but Iran said it wouldn’t participate. The current ceasefire is set to expire Tuesday.
The news strengthened the dollar hiking it to a one-week high, pressuring gold prices, as the yellow metal became more expensive for holders of other currencies. It also renewed concerns about persistent inflation and speculation that the Federal Reserve would keep interest rates unchanged for some time.
June gold futures rose 1.9% last week to $4,879.60 an ounce on Comex after the most-active contract gained 1.5% Friday. Bullion slid 11% in March after climbing 11% in February and rising 9.3% in January. It rallied 64% last year. The June contract is currently down $38.80 (-0.80%) an ounce to $4840.80 and the DG spot price is $4819.20.
Gold has tumbled since the Iran war started in late February, as investors turned to other assets. But prices rallied last week on an apparent easing of tensions.
The conflict has erased expectations that the Fed would cut interest rates this year. Most investors tracked by the CME FedWatch Tool now expect the Federal Reserve to keep U.S. interest rates unchanged until the middle of next year. Almost all the investors tracked by the tool are betting on rates staying unchanged at the next policy meeting next week.
Fed policymakers last month kept interest rates unchanged again at 3.50% to 3.75%. The Fed has kept interest rates unchanged this year after three previous rate cuts. The central bank began raising interest rates in March 2022 to fight inflation, ultimately imposing increases of by 5.25 percentage points before beginning rate cuts in 2024.
Front-month silver futures gained 7.8% last week to settle at $82.43 an ounce on Comex after the July contract increased 4% Friday. The most-active contract touched a record above $115 in January. Silver dropped 20% last month after gaining 19% in February and advancing 11% in January. It rose 141% last year. The May contract is currently down $1.497 (-1.83%) an ounce to $80.345 and the DG spot price is $80.22.
Spot palladium increased 2.9% last week to $1,582.50 an ounce after advancing 0.5% Friday. Palladium tumbled 17% in March after gaining 8.8% in February and advancing 2.4% in January. Palladium rose 74% last year. Currently, the DG spot price is down $39.30 an ounce to $1561.50.
Spot platinum rallied 2.8% last week to $2,122.20 an ounce after rising 0.8% Friday. It declined 17% in March after advancing 15% in February and gaining 1.4% in January. Platinum increased 122% in 2025. The DG spot price is currently down $64.70 an ounce to $2073.40.
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