Gold futures faced significant downward pressure, dropping over 3% following recent strikes between the U.S. and Iran. The broader economic picture also factored into market movement, with headline inflation reaching 4.2% year-over-year—the fastest pace since early 2023—driven largely by elevated energy prices. Meanwhile, core CPI showed a softer 0.2% increase, which allowed precious metals to trim some losses. The hotter inflation data has reinforced expectations that the Federal Reserve will hold interest rates steady at their upcoming June 17 meeting under Chairman Warsh. In the industrial metals complex, Copper futures traded lower, testing 6.28, as the prospect of higher-for-longer interest rates raised concerns about slowing global demand. Silver futures also saw slight declines but held up better than Gold, supported by the softer core inflation print. Despite near-term volatility, long-term industrial demand remains intact, buoyed by expanding data center infrastructure in China.