Gold prices retreated on Thursday, hovering near a one-week low, as escalating tensions in West Asia reignited concerns about global inflation and the trajectory of U.S. interest rates.
The decline marks a continuation of the pressure on precious metals, which have struggled to find footing amid shifting geopolitical risks and macroeconomic uncertainty.
Bank of America responded to the shifting landscape by reducing its 2026 average gold forecast to $4,360 per ounce.
The sell-off in gold comes as oil prices hover at over two-week highs, driven by Iran’s retaliation against fresh U.S. strikes in the region.
The surge in energy costs is weighing on investor sentiment, as higher oil prices threaten to keep inflation elevated and delay potential rate cuts by the Federal Reserve.
This dynamic has eroded the appeal of non-yielding assets like gold, despite the traditional safe-haven demand associated with geopolitical conflict.
Bank of America responded to the shifting landscape by reducing its 2026 average gold forecast to $4,360 per ounce.