Monday, 4th May 2026
Khabor Wala Desk
Published: 4th May 2026, 6:33 PM
Global gold prices experienced a substantial downturn on Monday, 4 May 2026, as a combination of renewed geopolitical friction between Iran and the United States, volatility in the energy sector, and a resurgent US dollar pressured the precious metals market. Within the opening hours of trading, the value of gold fell by more than 1 per cent, reflecting a strategic shift in investor sentiment away from traditional safe-haven assets in favour of the greenback.
According to data reported by Reuters, spot gold fell by 1.3 per cent to $4,553.53 per ounce by 11:40 GMT. Simultaneously, US gold futures saw an even steeper decline, dropping 1.7 per cent to trade at $4,565.40 per ounce. This sharp correction follows a period of record highs, suggesting a period of profit-taking and re-evaluation by global institutional investors.
The broader precious metals complex also suffered notable losses:
Silver: Spot silver prices plummeted by 3.1 per cent, falling to $73.04 per ounce.
Platinum: Declined by 2.5 per cent.
Palladium: Experienced the most significant drop among major metals, falling by 3.5 per cent.
Market activity remained relatively subdued in terms of volume, primarily due to public holidays in major financial hubs, including China, Japan, and the United Kingdom. The closure of these markets resulted in reduced liquidity, which often exacerbates price swings when significant geopolitical news breaks.
The primary catalyst for the day’s market movement was a fresh escalation of hostilities in the Middle East. Iran’s Fars News Agency issued a claim asserting that a United States warship had been targeted by a missile strike within the Strait of Hormuz, a vital maritime corridor for global oil shipments.
However, the United States Central Command (CENTCOM) issued a formal denial of these reports, stating that no such incident had occurred. Despite the conflicting narratives, the uncertainty triggered an immediate reaction in the energy markets. The price of crude oil surged, surpassing $113 per barrel, raising immediate concerns regarding global inflationary pressures.
Financial analysts have attributed the decline in gold prices to the increasing strength of the US dollar. Han Tan, the Chief Market Analyst at Exinity (formerly associated with Han Tan at Bybit), noted that in times of acute Middle Eastern conflict, investors frequently view the US dollar as a more reliable safe-haven than gold, particularly when inflation risks are tied to rising energy costs.
Furthermore, the outlook for US monetary policy has added to the downward pressure on gold. Although the Federal Reserve maintained interest rates at their current levels last Wednesday, the surge in oil prices has led analysts to speculate that planned rate cuts may be deferred. Higher interest rates typically increase the opportunity cost of holding non-yielding assets like gold, subsequently driving demand toward interest-bearing dollar accounts.
The volatility in the international market is expected to influence domestic prices in Bangladesh shortly. The Bangladesh Jewellers’ Association (BAJUS), the statutory body responsible for regulating local gold prices, typically reviews global spot market trends and the volatility of the local bullion market before adjusting prices. Should the global downward trend persist over the coming days, BAJUS may announce a reduction in the local price of various carats of gold to align with international benchmarks. Local traders are currently monitoring the situation closely as the global market reacts to the evolving security situation in the Persian Gulf.
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