Key Points
- XAU/USD traded at 4,392.01, down 63.98, or 1.4%, after hitting a session low of 4,366.34.
- Spot gold fell 1.5% to $4,388.76 per ounce as of 0740 GMT, after touching its lowest level since March 26.
- US gold futures for June delivery dropped 1.4% to $4,386.
- Oil prices jumped more than 3% after Iran’s Revolutionary Guards said they targeted a US airbase in response to fresh US attacks.
Gold fell to a two-month low on Thursday as fresh US strikes on Iran lifted the dollar, pushed oil prices higher, and renewed concerns over inflation. XAU/USD traded at 4,392.01, down 63.98, or 1.4%, at 05/28 11:08:16 GMT+3. The session high stood at 4,466.98, with a low of 4,366.34, an open at 4,457.39, and a close at 4,455.99.
Spot gold was down 1.5% at $4,388.76 per ounce as of 0740 GMT, after earlier falling to its weakest level since March 26. US gold futures for June delivery fell 1.4% to $4,386. The dollar rose to a one-week high, which made dollar-priced bullion more expensive for buyers using other currencies.
The move shows how gold remains caught between two forces. War risk can support safe-haven demand, but a stronger dollar and higher rate expectations are proving more powerful for now.
US-Iran Strikes Revive Inflation Pressure
The latest pressure came after the US military carried out new strikes in Iran. A US official said the attack targeted a military site that officials believed posed a threat to US forces and commercial shipping in the Strait of Hormuz.
The strikes came hours after Trump dismissed an Iranian report of a deal to restore traffic through the waterway.
Iran’s Revolutionary Guards then said they targeted a US airbase in response. Oil prices jumped more than 3% after the retaliation, raising fresh concerns that energy costs could feed into inflation again.
That is the core problem for gold. Higher crude prices can raise transport, shipping, production, and household costs. Gold often acts as an inflation hedge, but if inflation forces central banks to keep rates higher for longer, non-yielding bullion loses appeal.
Fed Speakers Keep Rate-Hike Risk Alive
Federal Reserve Governor Lisa Cook said on Wednesday that the central bank should hold short-term rates steady for now. She also said she was prepared to hike if needed, with tariffs, the Iran war, and rising AI-related investment pushing prices higher.
That message keeps traders cautious. The market now needs proof that inflation is cooling before gold can rebuild a stronger base. The US Personal Consumption Expenditures data, due later in the day, is the next major test for the Fed path.
A softer PCE reading could ease rate-hike fears and help gold stabilise. A hotter number would strengthen the dollar, lift yields, and keep pressure on XAU/USD.
Technical Analysis
Gold broke lower again, sliding toward the 4,390 region as stronger dollar momentum and fading safe-haven demand continued to pressure bullion.
- Current Price: 4,392
- MA5: 4,486
- MA10: 4,510
- MA20: 4,584
The technical structure has deteriorated sharply, with price now trading below all major short-term moving averages. The MA5 and MA10 are both rolling lower, reinforcing the current bearish momentum after repeated failures near the 4,600 resistance zone.
A firmer US dollar and stabilising Treasury yields have weighed heavily on gold, while improving equity sentiment has reduced defensive positioning across markets.
Immediate support now sits near 4,350, followed by the key March low region around 4,100. On the upside, resistance has shifted lower toward 4,500–4,550.
Unless gold can reclaim the MA10 and stabilise above resistance, the broader short-term bias remains tilted to the downside.
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Cautious Forecast
Gold may remain under pressure while trading below 4,510.65 and 4,584.29. A break below 4,366.34 would support a deeper move toward 4,098.79, especially if oil remains firm and the dollar continues to rise.
A recovery above 4,584.29 would show buyers are returning and could bring 4,848.65 back into view. The stronger bullish path needs three signals to align: US-Iran tensions cool, oil gives back the latest 3% jump, and PCE data lowers the risk of another Fed rate hike.
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Trader Questions
Why Is Gold Falling Today?
Gold is falling today as fresh US attacks on Iran lifted the US dollar, pushed oil prices higher, and raised concerns about inflation. XAU/USD traded at 4,392.01, down 63.98, or 1.4%.
What Is The Gold Price Today?
The gold price today is 4,392.01 for XAU/USD. The session high was 4,466.98, the low was 4,366.34, the open was 4,457.39, and the previous close was 4,455.99.
Why Did Gold Hit A Two-Month Low?
Gold hit a two-month low because the dollar rose to a one-week high after renewed US-Iran tensions. Spot gold fell 1.5% to $4,388.76 per ounce as of 0740 GMT, after touching its lowest level since March 26.
How Are US-Iran Tensions Affecting Gold Prices?
US-Iran tensions are affecting gold prices through the dollar, oil prices, and inflation expectations. Fresh US strikes in Iran raised fears of higher energy costs, which could keep interest rates higher for longer.
Why Is A Stronger Dollar Bad For Gold?
A stronger dollar can pressure gold because bullion is priced in US dollars. When the dollar rises, gold becomes more expensive for buyers using other currencies, which can reduce demand.
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