Gold Nears Lowest Level Ahead of US CPI
Gold prices (XAU/USD) came under intense pressure on Wednesday (June 10, 2026), trading in the range of $4,180–$4,175 per ounce, near their lowest level since March 23. Investors sold gold due to inflation concerns stemming from geopolitical tensions between the US and Iran, while also increasing pressure on central banks to remain hawkish.
The renewed conflict between the two countries began after the US launched a retaliatory strike against Iran following the downing of an Apache helicopter in the Strait of Hormuz. Iran's response, through the Islamic Revolutionary Guard Corps (IRGC), targeted US airbases in Jordan, Kuwait, and Bahrain. Iran warned that further US attacks would be met with harsher retaliation, keeping geopolitical risk sentiment high.
This situation also affected crude oil prices, which remained above their two-month low. The surge in energy prices added to global inflationary pressures, which in turn made gold, a non-yielding asset, less desirable. Capital flows tended to shift to assets that provide yields.
From a monetary policy perspective, the CME Group's FedWatch Tool indicates a nearly 75% probability that the Federal Reserve will raise interest rates by the end of 2026. Market concerns over high inflation due to energy consumption have kept expectations for a rate hike strong. However, market participants are awaiting the release of the US Consumer Price Index (CPI) data as the next benchmark.
CPI expectations will be a key catalyst for the movement of the US dollar (USD) and gold. If US inflation turns out to be higher than expected, the likelihood of an interest rate hike will increase, further depressing gold prices. Conversely, lower inflation data could provide room for a rebound in the precious metal.
Against an uncertain geopolitical backdrop, gold prices are predicted to fluctuate in the short term, with pressure from US bond yields and a strengthening dollar. Brent is also likely to continue fluctuating slightly amid tensions in the Middle East, leaving commodity and precious metal markets vulnerable to external sentiment.
Source: Newsmaker.id
