Overview
- Renewed U.S. strikes on Iranian sites and Iranian retaliatory attacks in early June have weakened hopes for a ceasefire and sent oil prices higher, which raised investor concern about more persistent inflation.
- Those oil-driven inflation worries have strengthened expectations that the Federal Reserve will hold or raise rates, and a firmer dollar and higher yields have reduced demand for non‑yielding gold.
- Gold has swung repeatedly near the roughly $4,400–$4,540 range, briefly topping about $4,540 and falling below $4,500 as traders reacted to mixed diplomatic signals and intraday headlines.
- Short‑term trading flows amplified moves, with a reported Hyperliquid perpetuals trader closing a large gold short overnight and analysts flagging key technical supports around $4,490–$4,510.
- Domestic markets mirrored international swings: India and Pakistan saw local price rebounds, and major houses cut near‑term targets while noting that U.S. jobs reports and the Fed meeting will likely determine the next sustained trend.