Gold on Monday rebounded from a more
than one-week low hit in the last session, as oil prices fell
after Iran cited progress in U.S.-Iran peace talks, though bets
of higher interest rates after hawkish U.S. Federal Reserve
signals weighed on the metal’s outlook.
Spot gold was up 0.9 per cent at $4,197.41 per ounce, as of
0238 GMT, after falling to its lowest level since June 11 on
Friday. U.S. gold futures for August delivery fell 0.7 per cent
to $4,215.90.
The first round of talks between high-ranking U.S. and
Iranian officials in Switzerland ended Monday, with an Iranian
foreign ministry spokesperson saying good progress has been
made, according to Iran’s Press TV.
A joint statement from mediating nations Qatar and Pakistan
said the U.S. and Iran agreed to a roadmap toward a final deal
within 60 days.
“The current situation in Switzerland is quite different
from a few hours ago when the two sides were squabbling, but now
it seems they’re making some progress,” said Edward Meir, an
analyst at Marex.
“We’re going to be trading on geopolitical guidelines for a
little while longer but the situation is fluid so perhaps best
to watch the action from the sidelines for now,” Meir added.
Brent crude futures fell over 1 per cent after the announcement.
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.
Meanwhile, Federal Reserve Chair Kevin Warsh’s emphasis on
inflation in last week’s press conference, without any
more-nuanced commentary about what might clear the bar for a
rate hike, led investors to conclude an increase was coming
soon.
Nine of the Fed’s 19 policymakers believe they will need to
raise the policy rate this year.
Traders see an 89 per cent chance of a rate hike in December, from
61 per cent before the Fed’s meeting, according to the CME FedWatch
Tool.
Spot silver rose 1.8 per cent to $66.10 per ounce, platinum
gained 0.2 per cent to $1,667.97, and palladium was up 1 per cent
at $1,270.41.
Published on June 22, 2026
