Gold rose more than 2% on Monday after
US and Iran officials said they had reached an initial
agreement to end their war, pushing oil prices lower and easing
concerns about inflation and higher interest rates.
Spot gold climbed 2.5% to $4,322.87 per ounce by 0312
GMT, hitting its highest level since June 9 and extending gains
for a third straight session. US gold futures for
August delivery rose 2.5% to $4,344.80.
US and Iranian officials said on Sunday they had agreed on
a framework to end their war, halt the U.S. blockade of Iran and
reopen the Strait of Hormuz.
The pact will be officially signed on Friday in Switzerland,
Pakistani Prime Minister Shehbaz Sharif said in a post on X.
The U.S. dollar fell to a 10-day low, making
greenback-priced bullion cheaper for other currency holders,
while oil prices slipped more than 4%.
“Lower oil prices and a softer dollar, stemming from reduced
geopolitical risk and the anticipated reopening of the Strait of
Hormuz, are helping to calm inflation expectations,” said Tim
Waterer, chief market analyst at KCM Trade.
“This combination is providing the precious metal with its
best tailwind in recent weeks, though sustainability will depend
on how durable the peace agreement proves to be.”
Gold prices have fallen about 20% since the start of the
U.S.-Israeli war against Iran in late February. The effective
closure of the Strait of Hormuz has led to a sharp increase in
global oil prices, stoking inflation concerns and raising
expectations of interest rates staying higher for longer.
Bullion loses appeal in a high-interest-rate environment as
it is a non-yielding asset.
Markets have scaled back expectations for a U.S. rate hike
in December to 48% after the peace deal, down from 69% last
week, according to the CME FedWatch tool.
Investors now await the Federal Reserve policy decision and
remarks, the first under Chair Kevin Warsh, on Wednesday, with
rates widely expected to remain unchanged.
“Currency debasement concerns, fiscal risks and ongoing
geopolitical fragmentation continue to underpin long-term demand
(for gold). A moderation in energy-led inflation could help
these themes regain traction,” OCBC said in a note.
Spot silver rose 3.6% to $70.39 per ounce, platinum
gained 3.3% to $1,773.70 and palladium climbed
3.3% to $1,324.75.
Published on June 15, 2026
