Gold holds ground despite rising oil, inflation jitters

June 03, 2026 (MLN): Gold held its ground on Wednesday as escalating Middle East tensions and mounting inflation fears kept investors on edge, with markets also bracing for a slate of key US economic releases.

Currently, spot gold is slightly down 0.48% to $4,461.66 an ounce as of [10:44 am] PST, according to data reported by Mettis Global.

Gulf hostilities intensified after the US military reported that Iranian missile strikes targeting Bahrain, Kuwait and other regional sites were intercepted or failed to hit their marks.

Global oil prices moved higher as investors assessed the growing conflict between the United States and Iran, while signs of continued diplomatic engagement between the two countries helped temper fears of a wider escalation.

Although gold is traditionally seen as an inflation hedge, elevated interest rates dim its appeal as a non-yielding asset.

Cleveland Federal Reserve President Beth Hammack said Tuesday that the central bank may need to resume rate hikes if already-elevated inflation continues to build, according to CNBC.

Market participants are now focused on US nonfarm payroll data due later in the session, followed by the broader employment report on Friday, both of which could shape expectations for the Fed's next policy move.

Among other precious metals, spot silver eased 0.1% to $75.01 per ounce, platinum slipped 0.2% to $1,933.15, and palladium edged up 0.2% to $1,372.25.

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