News from Hormuz shook the markets: Sharp drop in gold

News from Hormuz shook the markets: Sharp drop in gold

04.05.2026 15:41

Tensions and deadlock in negotiations on the US-Iran front, oil prices remaining above $100, and the Fed maintaining a 'hawkish' stance on interest rate cuts increased selling pressure on gold prices; while spot gold declined globally, gram gold in the domestic market fell below 6,600 TL, breaking through the level investors were watching as a critical threshold.

The US-Iran tension, high oil prices, and the US Federal Reserve's (Fed) "hawkish" messages caused a sharp decline in the gold market. Gram gold in the Grand Bazaar fell below the 6,600 TL level.

US-IRAN TENSION STIRS MARKETS

Iran's Fars News Agency announced that a ship belonging to the US Navy, which ignored warnings from the Iranian military, was targeted with missiles. However, a senior US official speaking to Axios denied the claim. These developments in the region have brought geopolitical risks back onto the market agenda.

DECLINE IN ONCE GOLD ACCELERATES

In global markets, ounce gold lost 1.3 percent in value, falling below $4,555 and testing its session lows. This decline was reflected in gram gold prices in the domestic market.

GRAM GOLD DROPS BELOW CRITICAL THRESHOLD

Gram gold traded in the Grand Bazaar fell below the 6,600 TL level, dropping under the critical threshold closely monitored by investors.

FED'S HAWKISH MESSAGES WEIGH ON GOLD

Despite keeping interest rates steady at its latest meeting, the US Federal Reserve's "hawkish" messages continue to put pressure on gold prices. The strengthening of views within the Fed opposing interest rate cuts, and the rise in oil prices increasing inflation risk, have reinforced expectations that rates could remain high for an extended period. This situation dampens demand for gold, which offers no interest yield.

OIL PRICES AND UNCERTAINTIES AT PLAY

Oil prices staying above $100 and uncertainties regarding US-Iran negotiations continue to be decisive in pricing across global markets.

 

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