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2026-05-26 17:45:56
Gold prices fell to $4,521 on Tuesday as oil price rebounds fueled inflation concerns and hawkish Fed expectations exerted downward pressure. Spot gold fell as much as 1.1% to $4,521.80 per ounce. Renewed tensions between the US and Iran pushed up Brent crude oil prices and made the outlook for US interest rates more uncertain. ActivTrades analysts pointed out that this uncertainty triggered higher oil prices, exacerbated inflation concerns, and strengthened market expectations of a hawkish stance from the Federal Reserve, which posed downward resistance to gold. The analyst further stated that the path of least resistance for gold prices remains downward, and traders will continue to focus on the progress of US-Iran negotiations while also anticipating the release of US PCE inflation data. From a trading psychology perspective, gold, as a traditional inflation hedge, should benefit from rising inflation concerns. However, the current market logic is that rising inflation forces the Fed to maintain a hawkish stance, leading to higher real interest rate expectations, which weakens the attractiveness of gold as a non-interest-bearing asset. Furthermore, previous expectations of a peace agreement had boosted risk appetite and suppressed safe-haven demand. With current geopolitical tensions escalating, funds are increasingly favoring the US dollar over gold as a safe-haven asset, further pressuring gold prices in the short term. Going forward, attention should be paid to whether PCE data will further reinforce the Federal Reserve's tightening path.
