Gotrade News - Spot gold tumbled 1.3% to USD 4,447.71 per ounce, marking its lowest level since March 27, 2026. June gold futures slid 1.2% to USD 4,448.40 per ounce as inflation and Middle East risks weighed on sentiment.
The drop reflects shifting expectations that the Federal Reserve could raise rates by 25 basis points before year-end. Mining stocks and gold-linked ETFs face renewed pressure as the safe-haven trade loses momentum.
Key Takeaways
- Spot gold fell to USD 4,447.71/oz, the lowest since late March, while June futures slipped 1.2%.
- Iran conflict overhang and rising US rate-hike bets are reshaping flows out of safe-haven metals.
- Silver dropped 3.2%, platinum lost 2.1%, while palladium edged 0.1% higher in mixed precious metals action.
Inflation Bets Reshape the Gold Trade
According to Kumparan, markets now price a possible 25-basis-point Fed hike by year-end. Minneapolis Fed President Neel Kashkari stressed policymakers must contain inflation risks aggressively.
Higher rate expectations typically reduce demand for non-yielding assets like bullion. That backdrop is pressuring SPDR Gold Shares (GLD), which tracks spot gold closely for global investors.
Peter Grant, VP and Senior Metals Strategist at Zaner Metals, said the Middle East still dominates positioning. He warned that a prolonged Iran conflict could erode optimism across commodity markets.
Investors are now weighing whether persistent geopolitical risk can offset tighter monetary policy expectations. The combination is creating sharper two-way moves across precious metals than seen earlier this year.
Iran Conflict and Miner Exposure
As reported by IDX Channel, the Strait of Hormuz closure has lifted Brent crude and reinforced rate-hike expectations. Iran plans to restore Hormuz shipping within one month, easing some supply concerns.
Energy-driven inflation risk has historically supported gold, but rate expectations are dominating this cycle. Producers like Newmont (NEM) remain sensitive to spot price swings around the USD 4,400 zone.
Diversified miner exposure through VanEck Gold Miners ETF (GDX) typically amplifies bullion moves. A sustained break below the March low could trigger broader miner repricing across the sector.
Per Kumparan, silver dropped 3.2% to USD 74.46, while platinum fell 2.1% to USD 1,916.90 per ounce. Palladium bucked the trend with a 0.1% gain to USD 1,386.47.
The divergence highlights how industrial demand and monetary policy are pulling precious metals in different directions. Traders are watching whether silver and platinum stabilize alongside any gold rebound attempt.
In Asia, Indonesian Antam retail gold held at Rp 2,785,000 per gram on May 28, 2026. The day prior, Antam dropped Rp 13,000 from Rp 2,798,000, reflecting the global pullback with a short lag.
Retail gold buyers across Southeast Asia often track spot moves through ETFs rather than physical inventory. Global flows still anchor regional pricing despite local market quirks and import dynamics.
