LONDON, April 24, 2026, 09:43 (BST)
Gold slipped 0.2% to $4,685.23 an ounce by 0744 GMT on Friday, tracking toward its first weekly drop in five weeks. Oil-fueled inflation jitters pushed up the dollar and sent bond yields higher, taking some shine off bullion’s safe-haven status. U.S. June gold futures dropped 0.5% to $4,700.50.
This shift is notable: gold isn’t just riding on fear anymore. As crude climbs, cost pressures ripple out—fuel, freight, factories—pushing inflation risks higher. Central banks could stay hawkish. And with yields up, cash and bonds start looking less easy to sideline, since gold doesn’t throw off interest.
Brent crude climbed past $106 a barrel earlier in the session, tacking on more than 17% for the week. The jump followed Iran’s release of video showing commandos seizing a cargo ship in the Strait of Hormuz. According to Reuters, roughly a fifth of the world’s oil and gas usually moves through the strait.
Gold’s bid hovered around $4,686 on Kitco’s live feed, stuck in a $4,657.70 to $4,712.00 band for the session. The metal remains pinned near the $4,700 mark traders have been eyeing all week, still lacking enough momentum to break out with conviction.
Kelvin Wong, senior market analyst at OANDA, pointed out that the metal is stuck in a range between roughly $4,645 and $4,900. “Everything now boils down to what’s going on in the Middle East,” he said. For Wong, any extended shutdown risk in the strait likely means oil stays up and gold faces more pressure. Zawya
The dollar piled on pressure, with the dollar index heading for its first weekly advance in three weeks. Ongoing U.S.-Iran negotiations have hit a wall, prompting investors to stick with safer dollar holdings. “Oil and the dollar were moving pretty closely together,” noted Sho Suzuki, market analyst at Matsui Securities. Reuters
Pressure across the precious metals complex weighed on prices, not just gold. Silver slipped 1% to $74.64 an ounce. Platinum ended down 1.4% at $1,977.47. Palladium, though, held its ground at $1,468.18.
Physical demand sent conflicting signals into the market. In India, gold premiums hit their highest point in more than 10 weeks as supplies tightened. Over in China, premiums moved up to $9-$12 an ounce above the global benchmark. “Renewed physical demand and fresh buying interest” came in with prices hovering near $4,700, said Peter Fung, head of dealing at Wing Fung Precious Metals. Reuters
Domestic gold was quoted around 151,200 rupees per 10 grams in India on Friday, according to Reuters. Retail interest faded following the Akshaya Tritiya festival. Some traders suggested demand might pick up again if prices slip under 150,000 rupees.
The double-edged risk is clear. If Hormuz reopens safely, oil prices might retreat and gold could claw back losses—as long as inflation worries abate. But a drawn-out closure would likely keep yields and the dollar elevated, leaving bullion vulnerable to fresh declines. Goldman Sachs figures Gulf oil supply would mostly bounce back within months after a full reopening, though tanker bottlenecks and spotty well performance could hamper the pace.
At this point, gold’s narrative isn’t really about a flight to safety—it’s about the drag from holding a non-yielding asset. Unless oil, the dollar, or yields shift out of their current ranges, anyone stepping in around $4,700 is likely signing up for more volatility.
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