Gold hits one week low as oil inflation fears weigh on metals

Friday 15 May 2026 - 14:10

By: Dakir Madiha

Gold hits one week low as oil inflation fears weigh on metals

Gold prices fell to a one-week low on Friday, extending a multi-session decline as rising oil prices and inflation concerns strengthened the US dollar and weighed on precious metals. The move marked a fourth consecutive losing session for gold, reflecting growing pressure from higher US Treasury yields and shifting expectations around future interest rate cuts by the Federal Reserve.

Energy markets added further strain as oil prices remained elevated due to ongoing disruptions in maritime routes linked to tensions between the United States and Iran. Brent crude traded above 105 dollars per barrel, keeping energy-driven inflation risks in focus. The stronger dollar made gold more expensive for international buyers, reducing demand and accelerating the downward trend.

Silver posted even steeper losses, dropping to 79.17 dollars per ounce and extending a sharp daily decline of more than 5 percent. The metal had traded in the mid-80 dollar range earlier in the week after previously reaching a historic peak above 121 dollars in January, before entering a volatile correction phase driven by shifting macroeconomic conditions.

Market expectations for monetary policy added to the pressure. Analysts revised year-end gold outlooks downward, citing persistent interest rate resilience and weaker prospects for near-term easing. US interest rates are expected to remain in a higher range for longer, with markets pricing in a strong likelihood that no rate cuts will occur this year, limiting support for non-yielding assets such as gold.

Regional pricing reflected the global downturn, with gold in Dubai also declining alongside international benchmarks as retail and wholesale demand softened. The broader environment of higher energy costs, a firm dollar, and restrictive monetary expectations continues to shape sentiment across precious metals markets.