Gold Struggles to Rally Despite Rising Oil Prices
In recent weeks, precious metals have remained close to record levels, yet they have not climbed as sharply as many analysts anticipated. This comes even as conflict in the Middle East has driven oil prices significantly higher and heightened worries about accelerating global inflation.
At the onset of the Iran war, gold prices jumped beyond $5,400 per ounce before pulling back and stabilizing at roughly $5,100.
Energy markets have undergone severe swings since the Iran conflict began. The global benchmark Brent crude temporarily spiked to about $119.50 per barrel—its highest point since 2022—before declining and later rising again to surpass $100 as supply interruptions emerged.
At the start of the year, oil prices were close to $60 per barrel. Since then, prices have increased by more than 50% in 2026, largely driven by fears that potential disruptions in the Strait of Hormuz—through which around one-fifth of the world’s oil supply passes—might significantly constrain global energy markets.
The sharp rise in energy costs has also reignited concerns about another inflationary shock, which could make it more difficult for central banks to move forward with plans to lower interest rates.
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