When oil prices fall, gold immediately rises.

During the ongoing session, the precious metal quickly regained upward momentum and is currently trading around $4,467 per ounce (+$34). Photo: Reuters .

At the start of trading on June 3rd (US time), world gold prices surged from around $4,440 to $4,466 per ounce. However, the upward momentum did not last long, and by the close of trading, the price had fallen sharply by $53.4 to $4,433.7 per ounce. August gold futures contracts in the US also closed down 1.2%, at $4,466.9 per ounce.

As trading progressed, the precious metal regained its upward momentum and is currently trading around $4,467 per ounce, representing a $34 increase for the day.

David Meger, Director of Metals Trading at High Ridge Futures, said that the current movement of gold prices is primarily driven by escalating tensions between the US and Iran.

In addition, the USD-Index rising for the third consecutive session also caused precious metal prices to record a drop of more than $50 in the previous session. A stronger dollar makes metals priced in USD more expensive for holders of other currencies.

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Meanwhile, in other metals markets, spot silver prices fell 2.2% to $73.4 per ounce; platinum prices dropped 3.5% to $1,868.58 per ounce; and palladium lost 3.5% to $1,321.97 per ounce.

Notably, the aforementioned recovery in gold prices was also influenced by global crude oil prices. In this morning's trading session, Brent crude oil prices fell 1.27% to $96.5 per barrel, while futures contracts for this type of oil decreased 0.69% to $97.14 per barrel. Similarly, WTI crude oil prices in the US fell 1% to $95 per barrel, and futures contracts also slightly decreased 0.65% to $95.4 per barrel.

In the US stock market, all three major stock indices closed in the red as escalating tensions in the Middle East and concerns about rising inflation prompted investors to take profits after a period of strong gains, according to Reuters.

Specifically, the Dow Jones Industrial Average fell 620.72 points (-1.21%) in the last session, to 50,687.07 points. The S&P 500 lost 56.06 points (-0.74%) to 7,553.72 points, while the Nasdaq Composite dropped 239.92 points (-0.89%) to 26,853.98 points.

Regarding the geopolitical situation in the US, the Republican-controlled House of Representatives has passed a resolution aimed at preventing President Donald Trump from continuing his war with Iran. However, for this resolution to take effect, it needs to be approved by the Senate and must receive the support of two-thirds of the senators in both houses to overcome Trump's almost certain veto.

President Trump said that talks with Iran could make progress as early as the end of this week. Meanwhile, Iranian Foreign Minister Abbas Araqchi said Tehran remains in contact with Washington, but that the talks have not made any significant progress. He added that both sides are reviewing the documents that have been exchanged.