Gold Jumps 2% to $4,304 as US-Iran Peace Deal Cuts Rate-Hike Bets
Updated
Updated · Reuters · Jun 15
Gold Jumps 2% to $4,304 as US-Iran Peace Deal Cuts Rate-Hike Bets
3 articles · Updated · Reuters · Jun 15
Summary
Spot gold climbed 2% to $4,304.11 an ounce, its highest since June 9, after U.S. and Iranian officials said they had reached a preliminary deal to end their war.
Oil fell more than 4% and the dollar slid to a 10-day low as the framework would halt the U.S. blockade of Iran and reopen the Strait of Hormuz, easing inflation fears.
FedWatch pricing showed December U.S. rate-hike odds dropping to 47% from 69% last week, a shift that boosted non-yielding gold by lowering the expected cost of holding it.
The pact is due to be signed Friday in Switzerland; analysts said the rally's durability will depend on whether the agreement holds, even as longer-term fiscal and geopolitical risks still support bullion demand.
Will the Strait's reopening slow the global rush from U.S. dollars to gold, or has the crisis permanently changed central bank strategy?
With Iran's nuclear program still unresolved, how fragile is this peace deal and the market rally it has ignited?
Gold Market Outlook 2026: Central Bank Demand, Fed Policy, and Geopolitical Shifts Drive Volatility
Overview
In June 2026, the gold market is shaped by a mix of global economic signals and shifting investor sentiment. Live gold prices in major Indian cities highlight ongoing interest, while expectations of a Federal Reserve interest rate hike have made gold less attractive compared to interest-bearing assets. This is because high interest rates increase the opportunity cost of holding non-yielding gold, causing prices to face downward pressure. As a result, market participants are closely watching the Fed’s actions, with over a 70% chance of a rate hike being priced in, making gold’s outlook especially sensitive to monetary policy changes.