BlockBeats News, May 28th, according to the financial website Investinglive, this week, due to the lack of substantial progress between the US and Iran, coupled with the hawkish risk from the Fed, the gold price fell to a two-month low. Despite market expectations of an imminent agreement and the reopening of the Hormuz Strait, no official announcement has been made yet. Currently, there is only a lot of noise and rumors. Additionally, in the past few days, limited military strikes have been carried out by both the US and Iran, but the US continues to state that the ceasefire agreement remains in effect. On the Fed side, an increasing number of policymakers are now advocating for abandoning the dovish stance, so we can expect this situation to unfold at the June FOMC meeting.

Furthermore, if there is no change in the US-Iran situation before then, with inflation remaining high and US data proving resilient, the market may face a hawkish surprise. In the short term, if the situation is resolved and the strait reopens, a drop in oil prices and an increase in rate cut expectations could support the gold price. However, if the strait remains closed for a longer period, oil prices stay high, then the risk of the Fed being forced to raise rates will increase. (FXStreet)