BOJ Hawk Signals Faster Interest Rate Hikes Amid Inflation Risks 
Bessent Says U.S. Must Strengthen Supply Chains and Economic Security 
Oil Prices Rebound as Strait of Hormuz Tensions Return After Ship Attack Near Oman 
South Korea’s KOSPI Jumps Over 5% as Samsung, SK Hynix Rally on Micron Earnings Boost 
White House Seeks $87.6 Billion Emergency Funding for Iran War, Farmers, and Ebola Response 
Gold Falls Below $4,000 as Strong Dollar and Fed Rate Hike Expectations Weigh on Prices 
Asian Markets Rally as Micron and Qualcomm AI Outlook Lifts Global Tech Stocks 
Malaysia Central Bank Moves to Support Ringgit Amid Foreign Fund Outflows 
Australian Household Spending Rebounds Strongly in May as Travel and Dining Drive Consumer Growth 
South Korea’s KOSPI Plunges as Apple Price Hikes and OpenAI IPO Delay Shake AI Chip Stocks 
Asian Currencies Trade Mixed as Yen Hovers Near 40-Year Low, Dollar Holds Firm on Fed Outlook 
Trump Requests $11 Billion More in Farm Aid as Rising Costs Pressure U.S. Farmers 
Australia Jobs Growth Strengthens Rate Hike Outlook 
Oil Prices Drop as Middle East Supply Recovery Eases Market Concerns 
Gold Prices Fall Below $4,000 as Strong Dollar, Fed Rate Hike Bets Weigh on Bullion 
Wall Street Ends Mixed as Micron Surges, Apple Drops After Price Hikes 
Gold prices slipped on Wednesday as investors weighed ongoing geopolitical risks in the Middle East alongside expectations surrounding the Federal Reserve’s upcoming interest rate decision. Spot gold declined by 0.5% to $4,572.96 per ounce, while gold futures also dropped 0.5% to $4,585.80, reflecting cautious market sentiment.
Other precious metals followed a similar trend, with silver edging down 0.2% to $73.0465 per ounce and platinum falling 0.7% to $1,929.63 per ounce. Despite persistent geopolitical uncertainty, gold has struggled to maintain upward momentum as macroeconomic pressures continue to dominate investor behavior.
Reports suggest that U.S. President Donald Trump is preparing for a prolonged naval blockade against Iran, aiming to restrict the country’s oil exports and increase economic pressure. This development raises concerns about potential retaliation from Iran, including the possible closure of the Strait of Hormuz—a critical global oil supply route. Such disruptions have already driven Brent crude prices above $110 per barrel, significantly higher than pre-conflict levels near $70.
Rising oil prices have fueled inflation concerns, prompting expectations that central banks may maintain higher interest rates for longer. This outlook has weighed heavily on gold, as higher rates increase the opportunity cost of holding non-yielding assets like bullion. Instead, investors have shifted toward the U.S. dollar, which has strengthened against major currencies and made gold more expensive for international buyers.
Market participants are closely watching the Federal Reserve’s policy decision, with expectations that rates will remain unchanged. However, analysts anticipate a more hawkish tone, potentially signaling fewer rate cuts in 2026. Similar policy announcements from the European Central Bank and the Bank of England are also in focus this week.
For gold prices to recover, analysts suggest that either oil prices need to stabilize or geopolitical tensions must ease, allowing central banks to adopt a more dovish stance. Until then, gold may continue to face downward pressure despite its traditional role as a safe-haven asset.
