2026.06.0915:13:42UTC+00Gold Drops Ahead of US Inflation Data

Gold prices fell to $4,300 per ounce on Tuesday, retreating to levels last seen in December 2025. The decline came as investors turned their attention to Wednesday’s upcoming US inflation report, where markets expect the annual inflation rate to have risen to 4.2% in May—its highest level in nearly three years—driven largely by a sharp increase in energy costs.

The anticipated pickup in inflation follows last week’s stronger-than-expected US employment data, which showed the economy added 172,000 jobs in May, significantly above forecasts. The robust labor-market figures led investors to ramp up expectations for additional Federal Reserve interest rate increases this year, with futures markets now implying roughly a 70% probability of a rate hike in December.

On the geopolitical front, developments in the Middle East pointed to a potential easing of tensions after Iran and Israel said they had halted attacks on one another in response to an appeal from US President Donald Trump. The news pressured oil prices lower, offering some relief to inflation concerns, although considerable uncertainty still lingers.