ETO Markets Global Pulse: Gold Drops 2%, Holds Near $4,485

Market Review

According to ETO Markets monitoring, on June 1 (Monday), spot gold moved lower in volatile trade. Prices briefly dropped nearly 2% to an intraday low of USD 4,447.71 per ounce, before recovering part of the losses and closing near USD 4,485.

On June 2 (Tuesday) during early Asian trading, spot gold moved in a narrow range around USD 4,482 per ounce. The market remains in a low-level consolidation phase.

Global Headlines

Trump Eyes Deal Within Week

Trump said he expects to reach an agreement with Iran within the next week. The deal may include extending the current ceasefire and reopening the Strait of Hormuz. He said talks are progressing well and remained optimistic. Earlier, Trump also said Hezbollah and Israel had agreed not to attack each other.

Iran Strikes US Israeli Vessel

Irans Islamic Revolutionary Guard Corps said its navy launched a retaliatory strike after US forces attacked Iranian vessels in the Gulf of Oman. The IRGC said cruise missiles hit the Sariska, a vessel linked to US and Israeli interests. The UK Maritime Trade Operations also reported that a cargo ship was hit by an unidentified projectile near southern Iraq and later exploded.

US Strategic Oil Reserves Drop

The Trump administration continued to release crude from the US Strategic Petroleum Reserve. The Department of Energy said reserves fell by 8 million barrels last week, after drops of 9.1 million and 9.9 million barrels in the previous two weeks. Total reserves fell to 357.1 million barrels, the lowest level since January 2024.

US Manufacturing Expansion Accelerates Further

The ISM manufacturing index rose to 54.0 in May from 52.7 in April, staying in expansion for a fifth straight month and reaching the highest level since May 2022. New orders increased to 56.8, while the employment index remained in contraction at 48.6. Construction spending rose 0.4% in April to an annualized USD 2.172 trillion.

Copper Tariff Review Lifts Prices

New York and London copper futures both rose on the first trading day of June. The US Commerce Department must submit its latest copper market review to Trump by June 30 and advise whether the US should impose tariffs on refined copper imports. Citi raised its copper outlook, expecting prices to reach USD 14,500 per tonne this month and USD 15,000 over the next year.

ETO Markets Analyst View (Spot Gold)

Spot gold remains in a short-term downtrend, with 4,510 acting as the key resistance level. If prices stay below 4,510, the weak structure may continue, with downside levels to watch at 4,440 and 4,400.

If gold moves back above 4,510, a recovery rebound may develop. In that case, the next upside levels are 4,545 and 4,580.

Overall, gold remains in a low-level consolidation phase after the recent decline. As long as 4,510 resistance holds, the risk of a move back toward 4,440 remains. Short-term price action still leans weak and range-bound.

With markets reacting to US-Iran talks, the Strait of Hormuz situation, and energy price moves, direction remains unsettled and subject to repeated retesting.

Disclaimer

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