Gold Stalls as Hormuz De-escalation Cools Energy Inflation

The potential for a U.S.-Iran agreement has triggered a broader market pivot. Brent crude’s dip below $85 during overnight trading provided the catalyst for a rebound in U.S. equity futures, as investors bet on a normalization of Gulf supply flows. This shift in sentiment is currently acting as a drag on gold, which is losing its status as a flight-to-safety asset as inflation expectations tied to crude oil soften.

Silver remains under pressure, trading down 0.49% at $67.025, caught between falling Treasury yields and a weakening industrial outlook. While the May CPI report showed headline inflation at 4.2% and producer prices climbed 6.5%, the immediate focus has shifted toward the energy sector’s retreat. Market participants are now watching to see if gold can clear the resistance zone of $4,250 to $4,350, or if the current cooling of geopolitical heat will push the metal toward the $4,104 support level.