Gold surrendered most of its earlier gains on Thursday, sliding to $4,080 per ounce—its lowest level since November 2025—as investors digested stronger‑than‑expected US inflation data, a European Central Bank rate hike, and escalating tensions in the Middle East.
US producer prices jumped 6.5% year-over-year in May, the fastest pace since November 2022 and above market expectations of 6.4%. The data highlighted the growing impact of the energy-price shock stemming from the closure of the Strait of Hormuz on the US economy. Together with earlier figures showing consumer prices rising at their quickest rate in three years, Thursday’s report is likely to intensify pressure on the Federal Reserve to raise interest rates in 2026.
At the same time, the ECB lifted interest rates for the first time since 2023 and revised up its inflation projections for 2026 and 2027. Adding to geopolitical risks, US President Trump pledged additional strikes on Iran and threatened to seize control of key elements of its energy infrastructure, including Kharg Island.
