2026.06.0807:08:43UTC+00Gold Extends Fall on Middle East Escalation

Gold slipped below $4,300 an ounce on Monday, hitting its lowest level in more than two months after Iran and Israel exchanged missile strikes, stoking fears that the latest flare-up could undermine President Donald Trump’s push for a new 60‑day ceasefire agreement with Tehran. Trump called on both parties to refrain from further military action and reiterated that negotiations are still underway.

At the same time, the protracted conflict and the near-continuous disruption at the Strait of Hormuz have strained energy shipments from the Persian Gulf, bolstering oil prices and intensifying inflation worries. In contrast, stronger‑than‑expected US employment data pressured bullion by reinforcing expectations that the Federal Reserve may raise interest rates later this year. Futures markets now imply roughly a 70% probability of a Fed rate hike in December, up from about 50% before the release of the jobs report.