Gold plunged to a near two-month low on Wednesday, May 27, 2026, falling 1.6 percent to $4,433.85 per ounce as escalating Iran war fears, hawkish Federal Reserve commentary, and a strengthening dollar combined to pressure the precious metal for a second straight session. Spot prices briefly touched $4,400 intraday, revisiting the same critical support level last tested on March 30. The selloff comes just ahead of Friday’s US PCE inflation data and Q1 GDP revisions, key indicators that will shape the Fed’s policy trajectory.
The CME FedWatch tool now shows zero rate cuts priced through September, with growing odds of an October hike as Middle East tensions feed persistent inflation concerns. US Treasury yields are hovering between 4.3 and 4.4 percent while the dollar index trades above 98.5, raising the opportunity cost of holding non-yielding bullion. Peter Grant of Zaner Metals noted the Iran conflict continues capping safe-haven demand despite gold-backed ETF holdings rising modestly in April.
FXnCO Insight
Traders should watch Friday’s PCE print closely—hotter inflation data could accelerate selling pressure toward the $4,370 structural support zone.
Source: Finance Magnates