# Gold rebounds on weak US growth as Hormuz tension lingers

**Published:** 2026-05-28T18:27:00.000Z  
**Topic:** Gdp  
**Sentiment:** bearish  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/5a3fcb4d-59d6-4f78-a269-060aed8d0e84

Spot gold climbs near $4,500 amid revised US GDP data and ongoing Strait of Hormuz risk, while silver rises and Treasury yields ease.

Spot gold rose 0.9% to around $4,495 per ounce on Thursday, buoyed by a downgrade in U.S. first‑quarter GDP and a softer dollar, even as geopolitical tension in the Strait of Hormuz kept markets cautious [1].

**Key takeaways**  
- Spot gold up 0.89% to ~$4,495/oz; gold futures gained 1.14% to $4,499.30 [1]  
- U.S. Q1 GDP revised to 1.6% annualised, down from 2.0%; core PCE inflation held at 3.3% YoY [1]  
- Dollar index slipped 0.1% to 99.16; 10‑year Treasury yield hovered near 4.48% [1]  
- Strait of Hormuz risk remains “two‑sided,” with cease‑fire hopes lowering oil prices but any flare‑up could lift crude and the dollar [1]  
- Silver rose 1.35% to $75.53 per ounce, with technical resistance near $78.00 [1]  

## Economic data drives gold’s short‑term bounce  

The market’s reaction to the revised GDP figure was swift. The 1.6% annualised growth rate, lower than the previously estimated 2.0%, signaled weaker economic momentum, while April’s personal consumption expenditures (PCE) inflation rose 0.4% month‑on‑month and 3.8% year‑on‑year. Core PCE, the Fed’s preferred gauge, increased 0.2% monthly and 3.3% annually, keeping inflation well above the Federal Reserve’s 2% target. This mix prompted traders to price a narrower path for monetary easing, easing pressure on yields and allowing gold to recover from its intraday low [1].

At the same time, the dollar index slipped marginally, and the benchmark 10‑year Treasury yield stayed near the 4.5% area, both of which traditionally support non‑yielding assets like gold. The combination of softer growth data and a modestly weaker dollar helped spot gold climb back toward the $4,500 level, while gold futures posted their largest one‑day gain since early May [1].

## Hormuz tension adds a geopolitical overlay  

The Strait of Hormuz, a narrow chokepoint for global oil shipments, remained the market’s primary geopolitical focus. A tentative 60‑day framework aimed at extending a cease‑fire and reopening the waterway without tolls is still under discussion, with no final approval. Recent skirmishes around the strait over the past 48 hours kept a risk premium embedded in oil, gold, and rates [1].

Analysts described the impact as “two‑sided”: optimism about a potential deal lowered oil prices, reducing inflation fears and supporting gold through lower yields and a softer dollar. Conversely, any renewed military exchange could lift crude prices, revive inflation expectations, and strengthen the dollar, which would weigh on gold and other non‑yielding metals [1]. Crude prices reflected this balance, with NYMEX WTI settling around $88.90 per barrel and Brent near $92.72 [1].

## Why it matters  

Gold’s rebound illustrates how macroeconomic surprises—here, a weaker GDP revision—can quickly offset geopolitical risk in commodity markets. The continued uncertainty around the Hormuz cease‑fire means oil prices and inflation expectations could swing sharply, keeping gold’s trajectory volatile. Traders will watch upcoming U.S. inflation releases and any concrete progress on the U.S.–Iran framework for clues on whether the metal can sustain its gains or face renewed pressure.

## Sources
1. Kitco — [Gold rebounds as weak GDP offsets Hormuz risk - Kitco PM Report](https://www.kitco.com/news/article/2026-05-28/gold-rebounds-weak-gdp-offsets-hormuz-risk-kitco-pm-report)
2. Invezz — [Gold rebounds from two-month low as US-Iran deal remains uncertain](https://invezz.com/news/2026/05/29/gold-rebounds-from-two-month-low-as-us-iran-deal-remains-uncertain/)
3. Economictimes — [silver price prediction: What is gold and silver price prediction for...](https://economictimes.indiatimes.com/news/international/us/what-is-gold-and-silver-price-prediction-for-monday-gold-rebounds-on-us-iran-ceasefire-hopes-silver-holds-steady/articleshow/131406384.cms)
4. Tradingview — [XAUUSD Chart — Gold Spot US Dollar Price — TradingView](https://www.tradingview.com/symbols/XAUUSD/)

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Cite as: TrendWatcher, "Gold rebounds on weak US growth as Hormuz tension lingers", https://www.trendwatcher.in/article/5a3fcb4d-59d6-4f78-a269-060aed8d0e84