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Gold prices firmed on Tuesday after an
interim US–Iran deal to end the war in the Persian Gulf eased
bets of a US rate hike, with investors awaiting details on the
agreement and the Federal Reserve’s policy meeting.
Spot gold was up 0.8% at $4,341.39 per ounce at 0851
GMT. Prices have recovered about 8% from a near six-month low
hit last week.
US gold futures delivery added 0.3% to $4,363.00.
US President Donald Trump on Monday said an agreement with
Iran has been signed and that the text of the deal would be
released sometime after a formal signing on Friday, adding that
the Strait of Hormuz would also be fully open.
“Reports around a peace deal have pushed oil prices lower
and the worst inflationary fears seem to be dissipating at this
stage,” ActivTrades analyst Ricardo Evangelista said.
“Investors are also reacting by trimming down expectations
of interest rate hikes from central banks and this is positive
for gold.”
Markets have pared back expectations for a Fed rate hike in
December to 56% from around 70% following the peace deal,
according to the CME FedWatch tool.
During periods of elevated interest rates, investors tend to
favor interest-bearing assets over non-yielding bullion.
Focus now shifts to a series of central bank meetings this
week, including the Fed’s decision on Wednesday, the first under
new Chair Kevin Warsh.
“Investors will be paying close attention to the
developments surrounding the FOMC meeting and see if there are
any hints of a shift back towards a more dovish stance. This
could create more upside for gold prices,” Evangelista said.
A record 45% of the reserve managers surveyed by the World
Gold Council, expect to increase their own institutions’ gold
holdings over the next 12 months, the international organization
said.
Spot silver rose 0.5% to $70.37 per ounce.
India’s silver imports plunged to their lowest level in over
three years in May, data showed, after the world’s largest
consumer of the metal tightened curbs on imports.
Platinum gained 1.5% to $1,793.78, and palladium
firmed 0.5% to $1,354.99.
Published on June 16, 2026
