"Global gold prices" plunged 2%, falling below $4,200, following the US attack on Iran and fueling concerns about rising inflation.

"Global gold prices" plunged 2%, falling below $4,200, following the US attack on Iran and escalating conflict in the Middle East, fueling concerns about rising inflation.

On June 10, 2026, at 10:47 AM, Yahoo Finance reported that gold prices continued to fall on Wednesday, dropping below $4,175 per ounce, after the United States launched an offensive against Iran in retaliation for the downing of a military helicopter. This has increased uncertainty surrounding efforts to end the war in the Middle East and heightened concerns about global inflationary pressures.

Spot gold prices fell up to 2%, dropping below $4,175 per ounce, after already declining 1.6% the previous day. This followed a US offensive targeting Iranian territory in the Strait of Hormuz after President Trump accused Iran of shooting down a US helicopter off the coast of Oman.

Iran's Mehr news agency reported that several explosions were heard on Qeshm Island and in the southern coastal areas of the country. Meanwhile, Iranian Foreign Minister Abbas Araghchi confirmed via the X platform that Iran would not let any attack or threat go unpunished.

Later, Iranian state media reported that Iran had launched a drone strike against the U.S. Fifth Fleet in Bahrain, further fueling concerns that the conflict could escalate in the region.

The latest clashes further threaten the fragile ceasefire agreement and could cause continued disruption to traffic through the Strait of Hormuz, a vital global energy shipping route.

Crude oil prices rose again on Wednesday, with Brent crude surging up to 2% to above $93 per barrel before paring its gains after the United States announced the end of its military retaliation operation.

The recovery in oil prices has fueled concerns that global inflation may accelerate again, leading many central banks to likely maintain high interest rates or even raise them again. This is a negative factor for gold, as gold is an asset that does not yield interest payments.

Gold prices have now fallen by about 20% from pre-Iran conflict levels in late February. Furthermore, they have broken below the 200-day moving average, a key support level used by institutional investors to track long-term trends, resulting in further technical selling pressure.

Suki Cooper, head of commodity research at Standard Chartered, believes gold prices are likely to become more volatile in the short term if markets begin to anticipate further interest rate hikes.

She warned that if gold prices continue to fall, it could lead to losses in many gold-invested ETFs, potentially triggering further selling and increasing the market's downside risk.

Cooper estimates that the next key technical support level for gold is around $4,100 per ounce. While gold demand in India remains relatively weak, the Chinese market continues to be a major strength, with the domestic gold price spread remaining below $10 per ounce.

As of 10:55 AM Singapore time, spot gold prices fell 2% to $4,175.85 per ounce. Other precious metals also declined, with silver down 2.3% to $63.86 per ounce, while platinum and palladium weakened. The US dollar index remained near its previous level.

Reference: finance.yahoo.com

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