As of the morning of May 28, spot gold was down 0.4% to $4,438.92 an ounce, while gold futures lost 0.3% to $4,467.57. The market remains trapped in the range of $4,400-4,600 per ounce, in which the metal has been trading since mid-May. Pressure on quotes is exerted by the continued strength of the U.S. currency and high yields on U.S. Treasuries.
According to Investing. com, the decline affected other precious metals. Spot silver lost 0.9%, falling to $73.9595 per ounce, and platinum fell 0.7% to $1,915.88.
The reason for another wave of selling was reports of new U.S. strikes on facilities in Iran. According to sources in Washington, the attacks were “defensive” in nature and do not mean the abandonment of the current ceasefire regime. However, markets took the situation as a signal of continued instability in the region. This is the second such strike by the U.S. in the current week.
Against this background, the oil market moved to growth: oil prices added about 2% on Thursday, having partially recovered from the recent decline. Investors fear new supply disruptions through the Strait of Hormuz, a key artery of global oil trade. Earlier, the U.S. president rejected reports of a possible agreement to resume full-fledged shipping through Hormuz within 30 days. The American leader also rejected the idea of joint control of the strait by Iran and Oman.
Analysts note that the gold market is in an unusual situation: the traditional protective asset does not receive full support even against the background of geopolitical escalation. The reason is the growth of the dollar and fears that rising oil prices will increase inflationary pressure and force the Federal Reserve to keep high rates longer.
