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Gold rose more than 1% on Thursday, recouping losses from the previous session, as a drop in oil
prices following a US-Iran interim agreement dampened
inflation expectations and supported bullion.
Spot gold was up 1.4% at $4,316.42 per ounce, as of
0242 GMT, after declining 1.7% on Wednesday. U.S. gold futures
for August delivery fell 1% to $4,336.70.
“It’s a bit of short position unwinding (in gold) given
yesterday’s steep fall and the reason for the short unwinding is
also due to the positive news coming out from the Middle East,
which has caused oil prices to fall,” said Kelvin Wong, a senior
market analyst at OANDA.
The United States and Iran released the text of their interim
agreement on Wednesday, with US President Donald Trump
threatening to resume attacks and kill Iranian officials if they
failed to honour their commitments.
The 14-point agreement extends the ceasefire announced in April
by another 60 days to allow the two sides to negotiate a final
truce.
Oil prices fell, reversing gains made on Wednesday after
Trump said he could resume his bombing campaign if Iran’s
leaders “don’t behave”.
Elevated oil prices stoke inflation concerns and raise
expectations of higher interest rates. Gold tends to lose appeal
when rates are high, as it does not yield interest.
“I expect gold prices to remain muted on the upside, given
the fact that market participants now have repriced a higher
possibility of the Federal Reserve to kind of kickstart an
interest rate-hike cycle,” Wong said.
Nine of the U.S. central bank’s 19 policymakers now believe they
will need to raise the policy rate this year, according to
projections published on Wednesday after the Fed announced its
decision to leave the policy rate in its current 3.50%-3.75%
range.
Traders now see an 85% chance of a U.S. rate hike in
December, jumping from 61% prior to the Fed decision, according
to the CME FedWatch Tool.
Spot silver rose 1.8% to $69.18 per ounce, platinum
gained 1.2% to $1,757.53, and palladium was up
1.3% at $1,329.99.
Published on June 18, 2026
