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CommoditiesMedium•2 June 2026•

1 min read

Gold Surpasses $4,500 as Lebanon Ceasefire Pressures US Dollar

Key Facts

1Gold reclaimed the $4,500 per ounce level, supported by a softening US Dollar.

2The ceasefire between Israel and Hezbollah helped cap the upside for the US Dollar.

Amid a shift in investor risk appetite, Gold reclaimed the $4,500 per ounce level, supported by a softening US Dollar. According to reports, the ceasefire agreement between Israel and Hezbollah helped cap the upside for the greenback, allowing the precious metal to gain momentum. This rally comes as the US Dollar's strength slowed following significant geopolitical developments in the Middle East.

This surge coincided with mixed US economic data, as the CB Consumer Confidence index released on May 26 fell to 93.1 from a previous 93.8, per market data. Furthermore, the Core PCE Price Index released on May 28 showed a monthly increase of 0.2%, coming in below the 0.3% forecast, which bolstered gold's appeal as inflationary pressures cooled alongside a GDP growth rate of 1.6% for the quarter.

Traders should watch for price stability above the $4,500 threshold, particularly as the market awaits upcoming speeches from Federal Reserve officials for clues on interest rate paths. According to the economic calendar, key catalysts include the EU New Car Sales data on May 27 and the Financial Stability Review, which may influence major currency fluctuations against gold.