Gold Slips as Stronger Dollar and Rising Oil Weigh on Prices

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June 1, 2026 — Gold prices moved lower at the start of the week as a stronger U.S. dollar and rising oil prices reduced demand for bullion, while markets remained focused on developments surrounding a potential extension of the U.S.-Iran ceasefire.

Gold retreats after recent gains

Spot gold fell around 0.3% to $4,521.25 per ounce, after reaching a two-week high during the previous session.

Meanwhile, U.S. gold futures for August delivery declined 0.9% to $4,551.60 per ounce, as investors took a cautious stance ahead of further geopolitical developments.

Stronger dollar pressures bullion market

The U.S. dollar strengthened against major currencies, making gold more expensive for holders of other currencies and reducing some demand for the precious metal.

Analysts noted that the stronger greenback, combined with rising energy prices, placed short-term pressure on gold despite continued geopolitical uncertainty.

Oil prices rise as Middle East tensions persist

Crude oil prices climbed more than 2% as tensions in the Middle East remained elevated.

Markets continued monitoring renewed military exchanges between the United States and Iran, as well as Israel’s expanded operations in Lebanon, developments that have increased concerns about energy supply risks and inflation pressures.

Investors await decision on Iran ceasefire proposal

Market attention remained focused on U.S. President Donald Trump’s expected decision regarding a proposed agreement to extend the ceasefire with Iran.

While negotiations have continued, both sides are still reported to have differences on several key issues, keeping uncertainty elevated across commodity and financial markets.

Safe-haven demand continues to support gold

Despite Monday’s decline, gold remains near historically elevated levels and continues to receive support from safe-haven demand.

Analysts said ongoing geopolitical risks, central bank buying, and uncertainty surrounding global economic growth remain supportive factors for the precious metal over the longer term.