Brent crude above $90 reignites inflation worries, offsetting recent softer U.S. inflation data and lifting Treasury yields.
Gold futures closed nearly unchanged Monday while silver rose for a second session, as escalating U.S.-Iran tensions drove Brent crude above $90 per barrel. The oil rally stoked concerns over persistent inflation, countering last week’s softer U.S. inflation figures.
Benchmark 10-year U.S. Treasury yields climbed, reflecting expectations that the Federal Reserve may delay rate cuts. Gold, typically sensitive to rate movements, held steady despite the upward pressure on yields.
Markets are now pricing in a reduced likelihood of a June rate cut, with traders monitoring upcoming economic data for further direction.