The U.S. and Iran stepped up attacks over the weekend, and Iran said the ceasefire between the two nations has effectively been abandoned. The potential for rising oil prices to worsen inflation has escalated bets that the Fed will have to raise interest rates to stem the higher price of goods. Gold has fallen on hawkish news about the war ever since the conflict began in late February, and higher interest rates are considered bearish for the yellow metal, making it a less attractive asset for investors.
August gold futures fell 2.3% last week to settle at $4,018.80 an ounce on Comex, though the front-month contract gained 0.7% Friday. 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 $1.6 (-0.04%) an ounce to $4017.20 and the spot price is $4009.60.
Three American military members died over the weekend as the war escalated, according to the Pentagon. U.S. strikes against Iran were conducted for a ninth consecutive night, though Secretary of State Marco Rubio said the U.S. is still open to diplomacy with Tehran.
The Iran conflict has curtailed oil tanker access to the Strait of Hormuz, a critical waterway for the energy industry. Iran’s Islamic Revolutionary Guards Corps said Monday that two oil tankers had been disabled trying to traverse the strait.
Over 85% of investors tracked by the CME FedWatch Tool are betting on interest rates staying unchanged at the next policy meeting at the end of this month but over 63% see a rate hike in September. The Fed has kept interest rates unchanged this year after three previous rate cuts. The Fed last month held interest rates steady at 3.5% to 3.75% but signaled growing support for a rate hike in 2026.
Front-month silver futures slid 6.4% last week to settle at $56.33 an ounce on Comex, though the September contract gained 0.3% Friday. 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 up $0.944 (+1.68%) an ounce to $57.270 and the spot price is $56.86.
Spot palladium decreased 1.9% last week to $1,261.00 an ounce after falling 0.4% Friday. 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 spot price is up $13.70 an ounce to $1272.50.
Spot platinum declined 1% last week to $1,611.30 an ounce after losing 1% Friday. 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 $14.50 an ounce to $1591.90.
