Gold prices climbed to $4,523.39 per ounce on June 2, 2026, while silver gained 1.9% to $76.67 per ounce, as investors moved into precious metals amid renewed geopolitical tensions and concerns over additional Federal Reserve interest rate increases, according to the USAGOLD daily market report.
The session's gains were driven by deteriorating US-Iran diplomatic relations. Weekend optimism surrounding negotiations faded after Iran halted communications with Washington following renewed military strikes near the Strait of Hormuz. The development pushed crude oil sharply higher and reignited inflation concerns across commodity markets.
Gold has maintained historically elevated prices through the first half of 2026. As of late May, the metal stood at approximately $4,463 per ounce, with market analysts projecting a range of $4,300 to $4,725 for June absent a major new catalyst. J.P. Morgan Global Research has set a price target of $5,000 per ounce for gold by the fourth quarter of 2026, citing strong central bank demand and persistent macroeconomic uncertainty.
Central bank purchasing has been a consistent price support, with global central banks expected to average approximately 585 tonnes of gold purchases per quarter through 2026. US and international institutional investors have also increased allocations to gold exchange-traded funds in response to inflation concerns and geopolitical volatility.
Dollar strength acts as a structural headwind for gold priced in US dollars, as it reduces the purchasing power of non-US buyers. Analysts note that the current combination of geopolitical risk and elevated rate expectations is overriding that headwind in the near term.
Source: USAGOLD -- https://www.usagold.com/daily-precious-metals-market-report-june-2-2026/