Gold Market: Spot gold fell 1.4% to $4,392.86 per ounce by 01:50 ET (05:50 GMT); gold futures dropped 1.3% to $4,422.76/oz, breaking below the $4,400/$4,600 range that had held since mid‑May, marking a two‑month low.
Other Precious Metals: Spot silver declined 1.9% to $73.2985/oz; spot platinum fell 1.6% to $1,899.42/oz.
Oil and Dollar: Crude oil prices rose approximately 4% following renewed US‑Iran airstrikes; the US dollar reached a near two‑month high against major currencies.
Geopolitical Developments: Early Thursday, the United States and Iran exchanged air strikes, ending a tentative cease‑fire; Iran struck a US base in Kuwait, the US conducted defensive strikes on Iranian targets. President Donald Trump dismissed reports of a framework to reopen the Strait of Hormuz within 30 days and rejected the idea of Iran and Oman controlling the passage. The US Treasury sanctioned an Iranian entity intended to collect tolls for Hormuz passage. Oil tanker traffic through Hormuz remains a fraction of pre‑war levels.
Economic Data Focus: Market attention turned to the US April Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge. Expectations are that the core PCE reading will inform expectations on Fed policy, with speculation that the Fed may keep rates unchanged or consider hikes later in the year due to inflationary pressures from higher energy costs.
Market Sentiment: Concerns that the Iran conflict could fuel higher inflation have reduced gold’s safe‑haven appeal, causing it to behave more like a risk‑driven asset since March.
