Spot gold price at 15:48 ET (13:42 GMT) was $4,447.09 per ounce, down 0.9%; gold futures were $4,475.01 per ounce, down 1%.
The decline was driven by a firmer U.S. dollar (up 1.07% against gold) and higher U.S. Treasury yields (TNX up 0.45%).
Fresh U.S.–Iran military confrontations: U.S. forces disabled an unladen oil tanker, repelled Iranian missiles and drones targeting Kuwait and Bahrain, and conducted self‑defence strikes on Qeshm Island; Iran retaliated by targeting the U.S. Fifth Fleet headquarters in Bahrain and a neighboring U.S. base.
Iran announced a four‑phase roadmap for a peace deal: (1) complete cessation of military operations, (2) lifting blockades, removal of oil sanctions, and reopening of the Strait of Hormuz, (3) broader negotiations on sanctions and nuclear issues, and (4) establishment of a supervisory committee to monitor implementation.
Oil prices rose on the same day, adding to inflationary pressures.
U.S. ADP private‑sector employment report showed 122,000 jobs added in May, the strongest increase since January 2025, with growth in eight of ten sub‑sectors.
ISM services PMI rose to 54.5 in May, above expectations, with the prices index reaching its highest level since August 2022; for the third consecutive month no commodity prices fell.
Fed Beige Book indicated slight‑to‑moderate economic activity expansion in 10 of 12 Federal Reserve districts.
Treasury yields rose after the ADP and ISM releases, prompting bond sell‑offs; higher rates typically weigh on gold prices.
Wall Street Journal’s “Fed whisperer” Nick Timiraos noted rising costs driven by fuel, energy, tariffs, and AI‑related demand, with no signs of disinflation.
