Gold Holds Above $4,200 as Hormuz Risk Premium Unwinds

Gold prices held steady above the $4,200 level while silver eased modestly as oil prices declined. May data showed CPI rising 4.2% and PPI up 6.5% year-over-year, keeping monetary policy restrictive, yet lower energy costs eased some inflation concerns.

Hopes for a US-Iran agreement triggered a sharp drop in crude, with Brent falling below $85 before stabilizing near $87.50. President Trump canceled planned strikes, opening prospects for Hormuz reopening and supporting equity markets.

US equity futures advanced after the S&P 500 gained 1.8%, the Dow rose 1.9% and the Nasdaq climbed 2.5%. Technically, gold targets the $4,250–$4,350 zone, while silver eyes a break above $68.53.