Commodities

Gold Falls as Trump Rejection of Iran Offer Fans Inflation Fears

A one-kilogram gold bar displayed at the Perth Mint Refinery in Perth, Australia. — A one-kilogram gold bar displayed at the Perth Mint Refinery in Perth, Australia.
Photographer: Matt Jelonek/Bloomberg

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By Yihui Xie and Jack Ryan

May 10, 2026 at 10:45 PM UTC

Updated on

May 11, 2026 at 9:31 AM UTC

Gold fell as President Donald Trump’s rejection of Iran’s latest peace offer to end the war in the Middle East fanned inflation fears.

Bullion dropped as much as 1.4% to below $4,650 an ounce. Washington and Tehran remain far apart on a peace framework, with Trump labeling Iran’s latest response to his proposal to end the conflict as “totally unacceptable.” The inflationary impact of the war has dimmed prospects of central bank interest-rate cuts that are typically positive for non-yielding bullion.