Gold Falls 2% After Trump Says Iran Ceasefire Is Over, Fueling Inflation Worries

By Giulia Petroni and Adam Whittaker

Gold futures fell after President Trump said he believed a ceasefire deal with Iran was over, prompting a surge in oil prices that revived concerns over inflationary pressure and interest-rate hikes.

In midmorning European trade, New York gold futures fell 2.2% to $4,066.50 a troy ounce. In London, shares in precious-metal miners slid, with gold and silver miners Fresnillo, Hochschild Mining and Endeavour Mining all down more than 4%.

Diversified mining stocks also dropped as investors reacted to weaker bullion prices and a broader deterioration in sentiment. Anglo American and the London-listed shares of BHP and Rio Tinto fell more than 3%. Copper miner Antofagasta dropped around 4.5%, while platinum miner Valterra Platinum was nearly 8% lower.

Trump's remarks came after the U.S. and Iran exchanged a series of strikes and Washington revoked a waiver allowing Tehran to sell oil, marking the sharpest escalation since the two sides signed an interim peace deal in mid-June. On Tuesday, the Islamic Revolutionary Guard Corps fired missiles and drones at ships near the Strait of Hormuz, eroding confidence in the waterway's reopening and fueling concerns over renewed supply disruptions.

While gold is traditionally considered a safe-haven asset, concerns that higher energy prices triggered by the conflict could reignite inflation and keep U.S. rates higher for longer--or prompt further increases--have weighed on the nonyielding metal.

Still, official-sector demand has helped cushion the decline. Analysts say continued buying by China's central bank and broader efforts by global central banks to diversify reserves have provided underlying support to prices.

Investors are now awaiting the Federal Reserve's meeting minutes, due later on Wednesday, for more cues on the monetary policy outlook.

Write to Giulia Petroni at giulia.petroni@wsj.com and Adam Whittaker at Adam.Whittaker@wsj.com

(END) Dow Jones Newswires

July 08, 2026 06:07 ET (10:07 GMT)