COMEX gold futures experienced a sharp decline on June 10th, approaching the 4000-point level to close at $4094.1 per ounce, a drop of 4.49%. Domestically, the overnight SHFE gold contract opened lower and continued its descent, breaking below the 900-point mark to settle at 898.94 yuan per gram, marking a 3.37% decrease.

On Wednesday evening, data released by the U.S. Department of Labor revealed that the Consumer Price Index (CPI) for May rose by 4.2% year-on-year, the largest increase since April 2023. The core CPI, which excludes food and energy, increased by 2.9% year-on-year. Although the CPI report suggested that the oil price shock has not yet significantly impacted the broader economy, remaining largely confined to the transportation sector, thereby providing more justification for the Federal Reserve to maintain interest rates until 2027, the market still priced in a potential Fed rate hike in October following the data release. This expectation continued to weigh on gold prices.

On the geopolitical front, former U.S. President Donald Trump expressed dissatisfaction with the slow progress of U.S.-Iran negotiations, threatening "very violent" attacks on Iranian infrastructure. Iran, in turn, warned of a more forceful response. The renewed anticipation of escalating conflict between the parties has rekindled market concerns. The resurgence of geopolitical tensions, combined with expectations for Federal Reserve rate hikes, delivered a dual blow to gold, prompting another rapid decline in its price. However, the U.S. stock market also exhibited notable weakness, which may compel the Fed to adopt more cautious language in its monetary policy communications. With the upcoming Federal Reserve policy meeting next week, market expectations of a hawkish stance from the Fed could continue to suppress gold prices. It is also important to monitor whether gold exhibits abnormal volatility around the meeting, potentially following a "buy the rumor, sell the news" pattern.