Gold Falls Amid Higher Treasury Yields And Oil Prices: What Next?

Gold prices fell 0.4% to $4,397.42 earlier today, August 18, 2026. Meanwhile, US gold futures for December delivery dropped 0.5% to $4,452.90. On the other hand, spot ​silver slipped 0.7% to $65.32 per ounce, platinum lost 0.6% to $1,759.63 and palladium dipped 0.6% to $1,325.47. Gold climbed to an all-time high earlier this year in January. The yellow metal has since faced a substantial correction since its January peak. Let’s discuss why gold is down today and where it may go next?

Why Did Gold Prices Fall, And Where Will It Go?

Gold’s decline comes amid higher US Treasury yields and oil prices rising. Oil prices have surged after Iran said that it would move to an offensive military stance in its war with the US. The move could lead to oil prices continuing its upward momentum. ANZ analyst Soni Kumari also believes oil prices will be a key factor in the gold’s performance.

Another factor to look out for is the Federal Reserve’s monetary policy. Gold prices could move if the Fed lowers interest rates. Investors could move towards high-risk assets if rates are lowered. Inflation in the US has dipped to 3.4% in July 2026. While inflation remains higher than the Federal Reserve’s 2% target, the cooling inflation figures could be a sign that we may get a rate relief later this year. However, if oil prices continue to surge, CPI (Consumer Price Index) may see a rise as well. Such a development may lead to a rise in gold prices.

Gold saw one of its most significant rallies in late 2025 till early 2026. The move was due to rising macroeconomic uncertainties and increased geopolitical tensions. However, IPOs (Initial Public Offerings) from SpaceX, and upcoming ones from OpenAI and Anthropic, may have drained liquidity from gold’s market.