Gold Falls Below $5,000 as Mideast War Keeps Oil Prices Elevated

Gold slid below $5,000 an ounce, as the war in the Middle East entered a third week and oil prices spiked after attacks on critical energy infrastructure over the weekend.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Gold slid below $5,000 an ounce, as the war in the Middle East entered a third week and oil prices spiked after attacks on critical energy infrastructure over the weekend.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.Bullion fell as much as 1% in early trading, following its second consecutive weekly drop. Higher energy prices and inflationary concerns arising from the conflict have cut expectations that the US Federal Reserve and other central banks will cut interest rates. Crude surged after US attacks on Iran’s main oil-export hub were followed by retaliatory attacks by Tehran on energy infrastructure in various Arab states.Uncertainty over how long the war will last makes it difficult to assess the impacts on markets and the wider economy. An aide to President Donald Trump said the conflict could last four to six weeks, while both sides have given mixed signals. Trump said Iran wants to make a deal but the US wants better terms, while Tehran said it hasn’t asked for talks or a ceasefire.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.As the war drags on, prospects for an interest-rate cut have dwindled. The latest US consumer spending data, released Friday, showed spending barely rose in January due to weaker-than-expected economic growth, even before the war began. Meanwhile, US consumer sentiment declined to a three-month low as fears mounted in recent weeks about the impact on gasoline prices from the conflict.Traders now see virtually no chance of a rate cut at this week’s Fed meeting. Higher borrowing costs typically weigh on precious metals, which don’t pay interest. However, while rising oil prices may add pressure to gold in the near term, concerns over stagflation — a combination of slower growth and high inflation — may prompt investors to turn to gold as a better store of value over the longer term.Spot gold fell 0.7% to $4,986.34 an ounce as of 7:26 a.m. in Singapore. Silver fell 0.7% to $80.03. Platinum and palladium dropped.

The Bloomberg Dollar Spot Index slipped 0.1% after adding more than 1% in the previous week.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2026 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.