AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

5/4/2026: Gold falls on Hormuz hostilities

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold fell 2.4% to close under $4,520 after renewed hostilities in the Middle East cast doubt on a lasting ceasefire and raised bets that the Fed will have to raise interest rates to combat energy-driven inflation. Silver shed 3.8% to finish at &3.07 an ounce.

Iran's Fars News agency reported that two Iranian missiles hit US warships as they escorted vessels through the blockaded Strait of Hormuz, something the US has denied. Separately, the UAE said it parried missile attacks as Iran tightens its control of Hormuz.

The escalating violence lifted US benchmark WTI crude 3.3% to more than $105 per barrel on the prospect of further supply deficits. Around 20% of the global oil supply ordinarily passes through Hormuz.

Bond traders are beginning to prices in higher interest rates from the Fed as one of the biggest energy shocks in history filters into inflation forecasts. Traders now see an 80% chance of a rate increase by April 2027, as opposed to several rate cuts before the US war on Iran.

Benchmark 10-year Treasury yields rose on the hawkish rate outlook, pressuring gold by increasing the opportunity cost for holding it instead of bonds for safety.

Tracking with yields, the dollar added 0.3% against major rivals. A stronger dollar weighs on gold and other commodities by making them more expansive in other currencies.

Platinum and palladium fell 2% and 4.1%, respectively.

At the New York spot close: gold lost $110.40 to $4,510.50; silver shed $2.88 to $73.07; platinum dropped $39.90 to $1,953.75; and palladium fell $63.60 to $1,474.65 an ounce.