Gold Holds Above $4,370, Silver Slides as Hormuz Risk Meets Inflation Jitters

Gold held above $4,370 as silver slid amid Hormuz risk and inflation jitters on Tuesday, August 11, 2026. The gold-tracking proxy settled at $4,371 an ounce, down 0.70% after spiking above $4,400 due to reports of Iranian forces harassing tanker traffic in the Strait of Hormuz. However, the rally was short-lived as oil prices approached $90, reigniting fears of an energy shock and prompting traders to reassess US interest rate prospects.

Silver, with its stronger industrial identity, fell 1.59% to $64.78 an ounce, weighed down by a stronger dollar and declining equity futures.

Latin America, particularly Mexico and Peru, felt the impact acutely as gold's decline and silver's drop affected their mining operations. For Mexico, the pullback came at a critical time for tax-receipt models and mining-equity screening, given the country's significant silver production. Similarly, Peru's gold and silver producers benefited from the US$4,371 close, as it remained near the top of its recent two-month range, providing a cushion for operators.

The key takeaway was that the gold rally was quickly extinguished by a dollar rebound driven by Hormuz-related concerns and rising oil prices. Silver, meanwhile, faced a steeper decline due to its industrial demand profile and its sensitivity to energy cost increases. The market's positioning ahead of Wednesday's US inflation data suggested a cautious approach, with traders opting to pay an insurance premium rather than chase higher returns.

The orderly nature of the sell-off and the dip in Brazil's stock market further indicated a pre-data cooling of risk appetite.