Gold gained for a fifth consecutive
session on Wednesday as optimism over a U.S.-Iran peace
agreement eased expectations of U.S. interest rate hikes, while
investors awaited further details on the deal and the Federal
Reserve’s policy meeting.
Spot gold was up 0.3% at $4,341.12 per ounce, as of
0230 GMT, trading near a one-week high hit on Monday. U.S. gold
futures for August delivery rose 0.2% to $4,361.10.
Details of a U.S.-Iran interim deal to end the Middle East
conflict are emerging, with U.S. President Donald Trump saying
it would rule out a nuclear weapon for Tehran and a U.S.
official saying it would allow Iran to sell oil once signed.
Oil prices hovered around a three-month low on news that
Iranian fuel may soon hit global markets, easing inflationary
concerns.
“The pullback in oil prices has eased some upward pressure
on interest rates and cooled rate-hike expectations. However,
the rally (in gold) is losing some steam as all eyes turn to the
monetary policy announcement from the Fed,” said Ilya Spivak,
head of global macro at Tastylive.
Investors turn their focus to U.S. Fed policy decision and
remarks, due later in the day, with rates widely expected to
remain unchanged.
“This marks the first FOMC meeting to be chaired by Kevin
Warsh and traders still seem unsure about how he will reconcile
a hawkish record, rising inflation, and pressure from a White
House demanding a dovish pivot,” Spivak said.
Traders now see a 59% chance of a U.S. rate hike in
December, down from about 70% last week before the U.S.-Iran
peace deal announcement, according to the CME FedWatch tool.
Gold loses its appeal when rates are high, as it does not
yield interest.
“Over the longer term, structural support (for gold) is
expected to persist, driven by ongoing Asian demand and
continued central bank purchases as a hedge against geopolitical
and policy risks,” Westpac analysts wrote in a research note.
Other precious metals also extended gains, with spot silver
rising 0.3% to $70.38 per ounce, platinum rose
0.5% to $1,812.80, and palladium was up 0.3% at
$1,355.65.
Published on June 17, 2026
