Stronger dollar, oil rally drag gold lower

June 01, 2026 (MLN): Gold prices fell on Monday as a firmer dollar and climbing oil prices weighed on the metal, with markets keeping a close watch on whether U.S. President Donald Trump would endorse a deal to extend the ceasefire between Washington and Tehran.

Currently, spot gold is down by 0.49% to $4,517.4 an ounce as of [10:44 am] PST, according to data reported by Mettis Global.

President Trump on Friday said a decision on the proposed Iran ceasefire extension was imminent, though the two sides remained at odds over core issues.

Separately, Israeli Prime Minister Benjamin Netanyahu ordered troops deeper into Lebanon as fighting against Iranian-backed Hezbollah continued despite a ceasefire that has been in place for over six weeks, according to Reuters.

This caused oil prices to rise 2.22% to $93.14 per barrel.

Although gold is traditionally sought as an inflation hedge, elevated rates diminish its attractiveness since the metal offers no yield.

Among other precious metals, spot silver edged up 0.4% to $75.58 per ounce, platinum climbed 1.1% to $1,937.30, and palladium gained 1.2% to $1,370.50.

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