Gold tumbles to two-month low as inflation hedge status fades

Gold bars weighing 1000 grams each are displayed at the Austrian Gold and Silver Refinery (Oegussa) in Vienna, Austria, on Feb. 3, 2026. Georg Hochmuth | AFP | Getty Images Gold prices fell to a two-month low on Thursday, as renewed uncertainty over the trajectory of the U.S.-Iran war gave the dollar a boost and drove oil prices higher. At 3:43 a.m. ET, spot gold was trading around 1.6% lower at $4,385.85 an ounce. Front-month U.S. gold futures were down 1.3% to settle at $4,389.70. Stock Chart Icon Stock chart icon Gold prices The move put spot prices at their lowest since March 26. The gold sell-off came as the U.S. dollar edged higher, making gold priced in the greenback more expensive for international holders. Gold price forecasts But UBS strategists doubled down on their bullish stance on gold in a Thursday note. They said that while gold has come under pressure during the Iran war due to worries that high energy prices will lead to tighter monetary policy from the Federal Reserve and other central banks, the precious yellow metal should regain momentum as rate hike expectations ease. UBS recently scaled back its year-end price target for gold to $5,500 an ounce. It had previously forecasted $5,900 per ounce by the end of the year. "We remain positive on the outlook for gold and continue to view the precious metal as a source of diversification within portfolios," Mark Haefele, chief investment officer at UBS Global Wealth Management, said. …