NEW YORK, May 11, 2026 – Gold prices declined on Monday, May 11, 2026. This market move happened after U.S. President Donald Trump rejected a response from Iran about a peace proposal. The proposal was created to end the war in the Middle East. The rejection has sustained concerns that the conflict will continue. These concerns are tied to higher oil prices and elevated inflation fears in the market. Investors are worried that these economic factors could keep interest rates higher for a longer time.
President Trump shared his decision in a social media post on Sunday, May 10. Iran had issued its formal response to the proposal earlier that same day. Bloomberg and CNBC reported that the president labeled the Iranian demands as "totally unacceptable." Reuters reported that the president dismissed the proposal in a social media post. According to Reuters, the Iranian reply focused on ending the war on all fronts. It specifically mentioned Lebanon as a focus for the peace efforts. The response also included a demand for compensation for war damage.
Market prices for gold were reported differently across several news outlets on Monday morning. Reuters stated that spot gold was down 0.5% at $4,692.49 per ounce. This was recorded as of 8:45 a.m. EDT. U.S. gold futures also lost 0.6% to reach $4,701.30. Bloomberg reported that bullion dropped as much as 1.4% at one point during the day. This decline took the price to below $4,650 per ounce.
CNBC reported that gold prices fell by 1%. The outlet listed spot gold at $4,667.99 per ounce. June futures on CNBC showed a loss of 1.1% to reach $4,677.80. CNBC also noted that the U.S. dollar rose on Monday. A stronger dollar makes bullion more expensive for people who do not use U.S. currency. All three news organizations, Reuters, Bloomberg, and CNBC, linked the lower prices to the stalled negotiations between the U.S. and Iran. They also pointed to elevated oil prices. Higher oil prices can stoke inflation risks. These risks reduce the appeal of non-yielding assets.
Reuters reported that global brokerages have changed their views on the economy. These firms have scaled back their expectations for U.S. interest rate cuts in 2026. The war in the Middle East began in late February. CNBC reported that gold has fallen by more than 11% since the conflict started. While gold prices were down on Monday, other precious metals saw some increases. Reuters reported that spot silver was up 3.1% at $82.84 per ounce. Platinum prices rose 0.8% to reach $2,071.70. Palladium saw a small gain of 0.2% to $1,494.97.
The market reaction for gold was also specifically affected by news from India. Reuters reported that shares of Indian jewellery retailers fell. This followed a statement from Prime Minister Narendra Modi. He urged a one-year pause on gold purchases. This suggestion was made to protect foreign exchange reserves (assets held by a central bank in foreign currencies).
Sources
- Reuters – https://www.reuters.com/world/india/gold-falls-oil-driven-inflation-worries-usiran-peace-talks-falter-2026-05-11/ (Published/Updated: May 11, 2026 3:07 AM UTC)
- Bloomberg – https://www.bloomberg.com/news/articles/2026-05-10/gold-falls-as-trump-rejection-of-iran-offer-fans-inflation-fears (Published: May 10, 2026 at 10:45 PM UTC; Updated: May 11, 2026 at 9:31 AM UTC)
- CNBC – https://www.cnbc.com/2026/05/11/gold-falls-on-oil-driven-inflation-worries-as-usiran-peace-talks-falter.html (Published/Updated: May 11, 2026; updated 2 hours prior to access)
