Gold fell sharply on May 27, with U.S. futures briefly dropping below $4,400 an ounce for the first time in about two months. CME June gold futures were reported as low as $4,398.5, down more than 2%, before recovering part of the loss. Reuters also reported a move toward two-month lows, with June U.S. gold futures down around 1.6% to $4,431.6 an ounce.

The pressure is not only about geopolitics. Markets are repricing the inflation and interest-rate outlook after months of disruption around the Strait of Hormuz. Reports of possible U.S.–Iran progress and hopes for reopening key shipping lanes reduced part of the safe-haven premium, while the earlier oil shock has already pushed investors to expect tighter monetary policy from major central banks.

That is a difficult setup for gold. Unlike bonds or deposits, bullion does not generate income, so higher real rates make it less attractive. Still, the safe-haven case has not disappeared: the Middle East conflict, energy-market uncertainty and inflation risk remain supportive factors. The near-term outlook depends on whether investors focus more on geopolitical protection or on the rising opportunity cost of holding a non-yielding asset.