Gold Slides on Oil-Led Inflation Fears, Stronger Dollar

Gold prices fell to a more than one-week low on Friday, May 15, 2026, and were on track for a weekly decline as higher energy prices stoked inflation worries and reinforced expectations that interest rates could stay high for longer. Spot gold was down 0.6% at $4,619.49 per ounce by 0045 GMT, leaving it 1.9% lower for the week. U.S. gold futures for June delivery fell 1.3% to $4,625.70.

Market attention also turned to a meeting between U.S. President Donald Trump and Chinese President Xi Jinping, where the Taiwan issue was discussed. In currency markets, the U.S. dollar rose more than 1% over the week, which can weigh on demand by making dollar-priced bullion more expensive for buyers using other currencies.

In energy markets, Brent crude oil rose 5% for the week and traded above $106 a barrel as the conflict in Iran kept the Strait of Hormuz largely closed, tightening global supply expectations. The rise in oil prices added to broader concerns about inflation pressures.

Fed policy signals and U.S. data in focus

Federal Reserve Bank of New York President John Williams said on Thursday that he did not see a need for the central bank to weigh any immediate change in interest rate policy, despite uncertainty tied to the Middle East war. Higher-for-longer rate expectations can reduce the appeal of non-yielding assets such as gold.

U.S. economic data released this week also pointed to resilience. Weekly jobless claims rose moderately, suggesting the labor market remained stable, while U.S. retail sales increased for a third straight month in April, partly because higher prices lifted receipts.

India’s import restriction and moves across other metals

Separately, India restricted gold imports under its advance authorization scheme to 100 kilograms, according to a government statement. The change applies to a program that provides certain exemptions for exporters.

Other precious metals also fell. Spot silver dropped 1.7% to $82.08 per ounce, platinum slipped 0.6% to $2,043.25, and palladium eased 0.1% to $1,435.36.

Traders will keep watching oil-market developments and signals on interest-rate policy as the Trump-Xi discussions continue to draw attention in global markets.