The yellow metal’s recent performance mirrors a broader market state of flux. While early gains were fueled by fears of escalation in the U.S.-Iran conflict, the rally evaporated mid-week following a 4.2% spike in May CPI data—the fastest pace since 2023. This inflationary pressure, combined with rising producer prices, has forced a recalibration of expectations ahead of the Federal Reserve’s upcoming policy decision.

Market participants are now fixated on the debut of new Federal Reserve Chairman Kevin Warsh. With Wall Street analysts largely retreating to the sidelines, retail sentiment has turned notably bearish. While some experts view the rebound from the $4,023 low as a sign of underlying strength, others warn that the market is caught in a technical breakdown, leaving prices vulnerable to further volatility as traders navigate a heavy calendar of central bank meetings and U.S. economic data.