New Delhi, June 3 -- Precious metals retreated from their brief rally on Wednesday, 3 June, surrendering all of the previous day's gains as deepening tensions in the Middle East kept crude oil prices elevated, reinforcing expectations that the US Federal Reserve could keep interest rates higher for longer.

Comex gold futures slipped back into losses, falling $53 per troy ounce to the day's low of $4,467, while silver futures also declined nearly $2 to trade around $74 per ounce. Tensions in the Middle East flared up after Iran launched missiles toward Bahrain, Kuwait, and other regional targets, though several were reportedly intercepted or failed to reach their intended locations.

The strikes came after semi-official Iranian news agenc...