16.05.2026 14:10
The rise in US bond yields and the strengthening of the dollar led to a sharp decline in gold prices. Spot gold fell by 2 percent to its lowest level in the week, while losses in silver, platinum, and palladium also drew attention.
The precious metals market ended the week with sharp losses. The rise in US bond yields and the strengthening dollar index triggered a sharp pullback in gold prices. As safe-haven demand weakened, spot gold fell to its lowest level in a week.
2% DROP IN SPOT GOLD
On the last trading day of the week, spot gold's ounce price lost 2% and dropped to $4,557.61. Thus, the yellow metal tested its lowest level since May 4th. Selling pressure was also effective in US gold futures. June futures closed the day at $4,561.90, down 2.7%. Domestically, gram gold closed the week at 6,640 Turkish lira.
BOND YIELDS PUT PRESSURE ON GOLD
Evaluating the pullback in markets, Marex analyst Edward Meir said the rise in global bond yields is putting serious pressure on gold. Meir stated, "There is an upward momentum in bond yields not only in the US but globally." The US 10-year bond yield rising to its highest level in a year reduced the appeal of gold, which yields no interest, while a stronger dollar made gold more expensive for foreign investors.
IRAN TENSIONS AND INFLATION CONCERN
Geopolitical developments also increased volatility in the markets. US President Donald Trump's harsh statements towards Iran and the rise in oil prices brought global inflation concerns back to the agenda. While oil prices are noted to have risen over 40% due to war risk, this also changed expectations regarding central banks' interest rate policies. Under normal circumstances, gold is seen as a safe haven against inflation, but it lost value as markets priced in the expectation that "high inflation will bring high interest rates." According to CME FedWatch data, markets have pushed back interest rate cut expectations and started pricing in possible rate hikes.
SILVER AND PLATINUM ALSO SUFFER LOSSES
The selling wave also affected other precious metals. Silver, which posted its worst weekly performance since March, fell 7.7% to $77.07. StoneX analyst Rhona O'Connell said silver is exiting overbought territory and a technical correction has become inevitable. Platinum fell 3.6% to $1,982.47, while palladium traded down 1.5% at $1,415.09.