Key Takeaways

• Gold recovers from 6-month low: Spot gold rose 0.6% to $4,093.35 per ounce after touching $4,023.96 — its weakest since late November.
• Gold futures dip: U.S. gold futures fell 0.5% to $4,114.25 amid higher-for-longer rate expectations.
• Prior session’s 4%+ crash: Wednesday’s severe selloff preceded Thursday’s tentative bounce.
• U.S. strikes Iran overnight: Fresh American attacks escalated the conflict, rattling global financial markets.
• Iran retaliates: Tehran targeted U.S. military airbases in Kuwait and Bahrain.
• Total Hormuz shutdown declared: Iran halted all vessel traffic through the strait — the most severe escalation yet for global energy markets.
• CPI confirms inflation surge: U.S. consumer prices rose 4.2% in May — the fastest pace in three years — driven by energy costs.
• Fed rate hike bets grow: Rate futures now imply growing odds of at least one hike before year-end — a sharp reversal from early 2026 expectations.
• ING’s assessment: “Near-term price direction is likely to remain closely tied to U.S. economic data, Treasury yields and expectations for Federal Reserve policy.”
• Dollar near 2-month high: The firm greenback makes gold more expensive for overseas buyers.
• PPI data due today: Producer price figures will offer more clues on the inflation trajectory.
• Silver rises 1%: To $64.01 per ounce.
• Platinum gains 0.7%: To $1,677.60 per ounce.
• Copper mixed: LME copper fell 0.6% to $13,442.33 per ton; U.S. copper futures rose 0.5%.

Gold prices ticked higher on Thursday after touching their lowest in more than six months earlier in the session, as investors weighed escalating tensions in the Middle East and growing expectations that the U.S. Federal Reserve could raise interest rates later this year.

Spot gold rose 0.6% to $4,093.35 per ounce by 02:44 ET (06:44 GMT), after falling to as low as $4,023.96 — its weakest level since late November.

U.S. gold futures dipped 0.5% to $4,114.25 per ounce amid expectations of higher-for-longer U.S. interest rates.

The precious metal had slipped more than 4% in the previous session.

Iran Declares Total Hormuz Shutdown

The United States launched fresh strikes on Iran overnight, escalating a conflict that has rattled global financial markets and pushed oil prices sharply higher.

Iran responded by targeting U.S. military airbases in Kuwait and Bahrain, and declared a halt to all vessel traffic through the Strait of Hormuz — a key route for global energy shipments and the most severe escalation yet for global oil markets.

“While geopolitical uncertainty and central bank buying continue to offer longer-term support, near-term price direction is likely to remain closely tied to US economic data, Treasury yields and expectations for Federal Reserve policy,” ING analysts said in a research note.

CPI Cements Rate Hike Expectations

Data on Wednesday showed U.S. consumer prices rose 4.2% in May from a year earlier — the fastest pace in three years — driven largely by higher energy costs.

The inflation report reinforced market expectations that the Federal Reserve will keep interest rates elevated for longer and could even resume tightening later this year if price pressures persist.

Interest-rate futures now imply growing odds of at least one Fed rate hike before year-end — a sharp shift from expectations at the beginning of 2026.

Higher interest rates increase the opportunity cost of holding non-yielding assets such as gold, while also supporting the U.S. dollar and making bullion more expensive for overseas buyers.

The U.S. Dollar Index was largely flat in Asian hours, remaining near a two-month high touched earlier this week.

Investors are now awaiting U.S. producer price data due later on Thursday for further clues on the inflation outlook and the Fed’s policy path.

Among other precious metals, silver prices rose 1% to $64.01 per ounce, while platinum gained 0.7% to $1,677.60 per ounce.

Benchmark copper futures on the London Metal Exchange fell 0.6% to $13,442.33 a ton, while U.S. copper futures rose 0.5% to $6.23 a pound.