Spot gold slid to about $4,432.60 an ounce and silver dropped 3.17% to $72.755 as renewed U.S.-Iran fighting hit metals after Wednesday’s close.
WTI settled at $96.02 and Brent at $97.81 after U.S. and Iranian forces exchanged fire and talks on reopening the strait stalled, raising risks to 11 million-14 million barrels a day.
Higher crude, a firmer dollar and 10-year Treasury yields near 4.5% outweighed gold’s usual safe-haven support, pressuring non-yielding metals.
U.S. data reinforced the move: ADP showed 122,000 private jobs in May, ISM services rose to 54.5 and its prices gauge hit 71.3, the highest since August 2022.
The inflation and yield shock also hit broader markets, with the S&P 500 down 0.7%, the Dow off 1.2% and small caps leading declines as investors repriced Middle East risk.
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Can the new Fed Chair cut rates while oil prices and inflation are surging?
Oil Surges Toward $100, Gold Drops 11%: Global Markets Rattled by US-Iran Conflict and Strait of Hormuz Closure
Overview
As of June 3, 2026, global markets are showing a clear split: oil prices are rising sharply while gold is under pressure. This divergence is mainly driven by escalating geopolitical tensions, especially the US-Iran conflict. Oil’s surge reflects direct supply fears, but gold, despite its safe-haven reputation, has recorded three straight monthly declines. The drop in gold is linked to elevated bond yields, outflows from gold ETFs, and expectations that the Federal Reserve will keep a tight monetary policy to fight inflation. Still, ongoing geopolitical risks and central bank buying are providing some support for gold prices.