Gold dips early Wednesday amid doubts that a peace deal between the U.S. and Iran was eminent as new fighting broke out in the Middle East.
Tehran indicated that negotiations had been suspended over fighting in Lebanon, though U.S. President Donald Trump expressed optimism about talks scheduled for Wednesday. The conflict has driven up the price of oil and the cost of goods, raising speculation that the Federal Reserve may have to raise interest rates to combat persistent inflation. That has pressured gold prices.
Gold also feeling pressure from this morning’s labor statistics. Private hiring < a href="https://www.cnbc.com/2026/06/03/adp-jobs-report-may-2026-payrolls-increase-by-122000.html">expanded in May, the ADP reported Wednesday. Companies added 122,000 workers, up from 105,000 in April and better than the forecast of 110,000 jobs. May marked the strongest month since January 2025. These solid numbers could turn the Fed’s focus to inflation.
Investors will now keenly watch Friday’s release of a key monthly jobs report by the Labor Department for signals on the Fed’s next moves. U.S. job openings in April to the highest in almost two years, data released Tuesday showed. Inflation has climbed to the highest levels in almost three years in recent months.
August gold futures rose 0.3% Tuesday to settle at $4,519.90 an ounce on Comex, though the most-active contract fell 1.6% in the first two days of the week. Bullion dropped 0.8% in May after losing 1% in April and sliding 11% in March. It rallied 64% last year. The August contract is currently down $46.20 (-1.02%) an ounce to $4473.70 and the DG spot price is $4458.40.
The U.S. military said Tuesday that Iran fired missiles at Kuwait and Bahrain that failed or were shot down, and that the U.S. launched strikes on an Iranian facility in response, according to the Associated Press.
On the economic front, strong labor market data this week would likely reinforce bets that the Fed will hold interest rates higher for longer.
Over 98% of investors tracked by the CME FedWatch Tool are betting on rates staying unchanged in June. The Fed has kept interest rates unchanged this year after three previous rate cuts. The central bank began raising interest rates in March 2022 to fight inflation, ultimately imposing increases of by 5.25 percentage points before beginning rate cuts in 2024.
The Fed in April held interest rates steady at 3.5% to 3.75%, as expected, but policymakers were unusually divided. The June 16-17 meeting of Fed policymakers will be the first under new Chair Kevin Warsh.
Front-month silver futures gained 0.4% Tuesday to settle at $75.56 an ounce on Comex. The July contract declined 0.4% in the first two days of the week. The most-active contract touched a record above $115 in January. Silver gained 2.5% in May after losing 1.2% in April and dropping 20% in March. It rose 141% last year. The July contract is currently down $1.666 (-2.20%) an ounce to $73.890 and the DG spot price is $73.80.
.Spot palladium fell 1% Tuesday to $1376.40 an ounce and is down 1.6% so far this week. Palladium fell 12% last month after rising 3.2% in April and tumbling 17% in March. Palladium rose 74% last year. Currently, the DG spot price is down $38.40 an ounce to $1344.00.
.Spot platinum increased/decreased 1% Tuesday to $1934.86 an ounce. It lost 1% in the first two days of the week. It dropped 3.2% in May after gaining 1.3% in April and declining 17% in March. Platinum increased 122% in 2025. The DG spot price is currently down $38.80 to $1906.50.
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