Gold reclaimed some turf, getting back near the $4500 mark after falling to its lowest level in about a month and a half early Wednesday on a strong dollar and high Treasury yields. However, U.S. Treasury yields have now slipped on hopes of a potential resolution to the U.S.-Iran conflict easing some inflation concerns, giving gold a bump.
June gold futures fell 1% Tuesday to $4,511.20 an ounce on Comex, and the most-active contract declined 1.1% in the first two days of the week. Bullion dropped 1% last month after sliding 11% in March and climbing 11% in February. It rallied 64% last year. The June contract is currently down $17.50 (-0.39%) an ounce to $4493.70 and the DG spot price is $4487.00.
Gold has largely fallen on hawkish news about the war, with investors turning more toward the U.S. dollar and focusing on concerns about inflation and interest rates. Investors are closely watching moves in the U.S. Senate to advance legislation that would force U.S. President Donald Trump to withdraw from the Iran war.
The 30-year Treasury yield on Wednesday climbed to its highest level since the global financial crisis.
The Fed last month held interest rates steady at 3.5% to 3.75%, as expected, but policymakers were unusually divided. Almost all the investors tracked by the CME FedWatch Tool are betting on rates staying unchanged again in June. The Iran war has erased expectations that the Fed would cut interest rates this year, with more and more investors now forecasting a rate increase instead.
Last week, showed that two key inflation measures for April, the consumer price index and producer price index, increased sharply. The Iran conflict has resulted in the closure of shipping traffic through the Strait of Hormuz, a critical oil artery, sending oil prices soaring.
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.
Front-month silver futures lost 3% Tuesday to settle at $75.16 an ounce on Comex, and the July contract tumbled 3.1% in the first two days of the week. The most-active contract touched a record above $115 in January. Silver lost 1.2% in April after dropping 20% in March and gaining 19% in February. It rose 141% last year. The July contract is currently up $0.296 (+0.39%) an ounce to $75.455 and the DG spot price is $74.86.
Spot palladium retreated 3.9% Tuesday to $1,364.50 an ounce and has lost 4.4% so far this week. Palladium rose 3.2% last month after tumbling 17% in March and gaining 8.8% in February. Palladium rose 74% last year. Currently, the DG spot price is down $8.20 to $1359.00.
Spot platinum decreased 1.6% Tuesday to $1,949.90 an ounce and has dropped 2.2% this week. It gained 1.3% in April after declining 17% in March and advancing 15% in February. Platinum increased 122% in 2025. The DG spot price is currently down $10.90 an ounce to $1936.10.
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