Key Takeaways

• Gold slips: Spot gold fell 0.6% to $4,460.87 per ounce, while gold futures eased 0.7% to $4,488.84.
• Range-bound trading: Conflicting Iran headlines have kept gold locked in a tight band in recent sessions.
• Qeshm Island struck: U.S. Central Command confirmed strikes on the island near the Strait of Hormuz.
• Iran fires on Kuwait and Bahrain: Tehran launched ballistic missiles at the two Gulf states.
• Israel continues Lebanon operations: Military activity in southern Lebanon persisted, with new talks scheduled Wednesday.
• Iran-U.S. talks stalled: Iranian media report Tehran hasn’t communicated with Washington for several days.
• Trump stays optimistic: The president insisted talks were continuing and a deal could still be reached.
• Tentative framework exists: Last week’s draft deal has yet to be formally approved by either side.
• Rate hike fears dominate: Oil-driven inflation fears are overriding gold’s traditional safe-haven appeal.
• Job openings surprise: U.S. April JOLTS data showed unexpected rise, reinforcing restrictive Fed expectations.
• Data deluge Wednesday: ADP employment, ISM services, and factory orders data all due.
• Nonfarm payrolls Friday: The week’s biggest market test.
• Dollar firms: DXY edged up 0.1%, adding pressure on bullion.
• Silver and platinum fall: Silver dropped 0.9% to $74.47/oz; platinum eased 0.4% to $1,929.60/oz.
• Copper retreats: LME copper fell 1% to $13,885.90 per ton.

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Gold prices edged lower on Wednesday as investors monitored developments in the Middle East and awaited key U.S. economic data that could provide fresh clues on the Federal Reserve’s interest-rate path.

Spot gold slipped 0.6% to $4,460.87 an ounce by 02:28 ET (06:28 GMT). U.S. gold futures eased 0.7% to $4,488.84 per ounce.

Gold has traded largely rangebound in recent sessions amid conflicting headlines surrounding the Iran conflict.

Israel Continues South Lebanon Ops; U.S.-Iran Talks Stalled

Investors continued to assess Middle East updates as Israel maintained military operations in southern Lebanon, while Iran fired ballistic missiles at Kuwait and Bahrain.

Additionally, U.S. forces conducted strikes on Iran’s Qeshm Island, U.S. Central Command said in a post on X. The island lies near the Strait of Hormuz — a vital waterway through which roughly a fifth of the world’s oil consumption passes.

Another round of talks involving Israel and Lebanon is scheduled for Wednesday, while uncertainty persists over negotiations between Washington and Tehran.

Iran and the United States said last week they had reached a tentative framework agreement to halt the conflict, but the deal has yet to be formally approved.

Iranian media reported that Tehran had not communicated with Washington for several days, fueling speculation that negotiations had stalled. U.S. President Donald Trump, however, said talks were continuing and expressed confidence that an agreement could still be reached.

While geopolitical tensions typically support safe-haven demand for gold, inflation fears driven by the oil surge have stoked bets on a Federal Reserve rate hike.

U.S. Jobs Data in Focus for Fed Rate Cues

Data on Tuesday showed U.S. job openings unexpectedly rose in April, reinforcing expectations that the Federal Reserve may keep monetary policy restrictive for longer.

Investors are now turning their attention to a series of U.S. economic indicators due later on Wednesday, including the ADP employment report, ISM services survey, and factory orders data.

These figures come ahead of Friday’s closely watched nonfarm payrolls report.

Markets currently expect the Fed to remain on hold at its June meeting, but traders continue to price in the possibility of a rate hike this year. Higher interest rates tend to pressure non-yielding assets such as gold by increasing the opportunity cost of holding bullion.

The U.S. Dollar Index edged up 0.1% on Wednesday.

Among other precious metals, silver prices fell 0.9% to $74.47 per ounce, while platinum eased 0.4% to $1,929.60 per ounce.

Benchmark copper futures on the London Metal Exchange fell 1% to $13,885.90 a ton, while U.S. copper futures also fell 1.1% to $6.61 a pound.