Gold falls 0.5% to $4,067.99/oz as U.S.-Iran tensions lift oil and rate-hike bets build

A fresh round of missile and drone strikes over the weekend involving the U.S. and Iran hit U.S. military bases in Kuwait and Bahrain, again disrupting shipping through the Strait of Hormuz and lifting oil prices on Monday. U.S. May CPI accelerated to 4.0% year-on-year, the highest in three years, driven by energy prices pushed up by the Middle East conflict. Markets are pricing in three Federal Reserve rate hikes this year, with an about 77% chance of a December increase. Spot gold fell 0.5% to $4,067.99 an ounce, while silver and palladium declined and platinum edged higher.