Gold Holds Near $4000 as Fed Hawkishness Offsets Gulf Risks

Gold prices held firm near $4027 an ounce, up 0.73%, while silver gained 0.87% to around $57.80. The metals rebounded from recent losses on lower Treasury yields and a softer dollar as traders reassessed risks in the Strait of Hormuz.

May U.S. PCE inflation rose 0.4% monthly and 4.1% yearly, with core PCE up 0.3%. This pushed 10-year yields down to 4.4% and two-year yields to 4.12%. Yet the Fed’s updated projections signal a higher rate path into 2026, capping precious-metals advances.

Geopolitical tensions flared again after a ship attack in the strait, lifting oil prices 2% following Brent’s drop to $72.24. Gold acts as a hedge against renewed shipping shocks. Technically, gold eyes $4040 resistance and $3950 support, while silver targets $59 resistance and $57 support.