Gold prices held steady Tuesday, with investors bracing for potential Federal Reserve rate hikes that could strengthen the dollar and weigh on the non-yielding precious metal.
Oil prices, meanwhile, climbed on renewed geopolitical risk. Tensions around the Strait of Hormuz-a critical chokepoint for global crude and LNG shipments-have escalated, with the U.S. and allies increasing naval presence near Iran.
Prediction markets reflect a bearish outlook for gold in May 2026, with odds of higher prices at just 0.8% to 3.8%. West Texas Intermediate crude shows a bullish skew, with the highest sub-market hitting 66.5% for a price increase.
Key events to watch include Fed communications, diplomatic efforts in the Gulf, and any unexpected OPEC+ announcements.