The broader macro environment remains a persistent headwind for non-yielding assets. Friday’s nonfarm payroll report, which revealed a 172,000 gain in May and a steady 4.3% unemployment rate, has effectively capped gold's recovery from session lows. Traders are now shifting their focus toward Wednesday’s Consumer Price Index and Thursday’s Producer Price Index, seeking further clarity on the Federal Reserve’s interest rate trajectory.

Energy markets are also playing a role in this tug-of-war. Brent crude retreated from the $98 mark after reports indicated a pause in the Israel-Iran exchange, reducing the immediate risk premium tied to the Strait of Hormuz. Although elevated oil prices generally support inflation-hedge demand for gold, they simultaneously reinforce the higher-rates narrative that weighs on precious metals. Currently, the U.S. dollar index sits at 99.96, while the benchmark 10-year Treasury yield holds near 4.6%, leaving gold bulls looking for a clean break above the $4,350 to $4,370 resistance zone to regain momentum.