Key facts
- Bitcoin and gold prices declined due to concerns over prolonged high U.S. interest rates.
- U.S. consumer inflation saw its fastest increase in three years in May, boosted by energy prices.
- Fresh U.S. strikes on Iran led to a rise in oil prices and concerns about inflation.
- Gold reached its lowest level in over six months.
- Ivory Coast's gold output is expected to increase to 62 metric tons by 2026.
Bitcoin and gold prices experienced declines as traders anticipated sustained high interest rates following a report indicating elevated U.S. consumer inflation. The inflation data, the fastest in three years, was primarily driven by surging energy prices amid ongoing Middle East conflict.
Fresh U.S. strikes against Iran overnight intensified concerns about inflation, particularly as oil prices climbed. Iran declared the closure of the Strait of Hormuz following the U.S. military actions. While gold is typically seen as an inflation hedge, higher interest rates tend to negatively impact non-yielding assets like gold.
Spot gold fell 0.2% to $4,063.87 per ounce, earlier hitting a more than six-month low. U.S. gold futures for August delivery also decreased by 1.1% to $4,086.50. Other precious metals saw mixed movements, with silver down 0.9% and platinum down 0.6%, while palladium gained 1%.
In separate news, Ivory Coast's gold output is expected to reach 62 metric tons in 2026, an increase from 59.33 tons in 2025, according to the country's director general of mines. Markets are also awaiting U.S. Producer Price Index data for May, due later in the day, for further assessment of the Federal Reserve's monetary policy.