Gold prices surged nearly 3% to trade above $4,325 per ounce on Monday, marking one of the best single-day gains in June 2026 as markets responded positively to the U.S.-Iran peace agreement that was much-awaited boost for safe-haven assets. The 14-point agreement extends the ceasefire announced in April by another 60 days to allow the two sides to negotiate a final truce, with the agreement set to be signed in Switzerland on June 19 and reportedly including the lifting of blockades, sanctions relief for Iran, and the dismantling of Tehran's nuclear program. Spot silver outperformed gold with over 4% gains, soaring to an intraday high of $70.8135 per ounce before settling around $70.40 per ounce, as silver halted its three-straight weekly losing streak after falling to almost $60 last week. Oil prices declined to a two-month low following the announcement, easing concerns over rising inflation and the prospect of interest rate hikes that have weighed on bullion.
Gold and silver prices moved higher during the trading session as lower oil prices helped reduce inflation concerns and eased expectations of future interest-rate hikes. Spot gold rose 1.4% to $4,316.42 per ounce, as of 0242 GMT, after declining 1.7% on Wednesday, while US gold futures for August delivery fell 1% to $4,336.70. Spot silver rose 1.8% to $69.18 per ounce, after falling 3% in the previous session. Platinum gained 1.2% to $1,757.53, and palladium was up 1.3% at $1,329.99. According to Kelvin Wong, senior market analyst at OANDA, "It's a bit of short position unwinding 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." Gold has traditionally been viewed as a store of value during periods of uncertainty, but often struggles when interest rates remain high because investors can earn returns from interest-bearing assets. With rate-hike concerns easing, gold received support from investors, with silver often following gold during such periods.
Gold is currently testing the $4,350 resistance level with COMEX Gold opening with a gap up and facing $4,350 resistance, while a sustained move above the $4,350-$4,380 resistance zone could strengthen momentum further and extend the rally toward the $4,450 mark. On the downside, immediate support is now placed at $4,300-$4,280, and a decisive break below this zone could lead to gap-filling pressure and drag prices toward the $4,240-$4,200 support area. Silver is currently holding above the $70 mark with immediate resistance at the $72-$73 zone, and a sustained move above this range could extend the rally toward the $75-$76 area. On the downside, a break below the $70-$69 support band could drag prices back toward the $67-$66 support zone. The current rebound from the 4,020 low remains on cautious footing, with a sustained daily or weekly close above 4,370 accompanied by daily momentum readings moving back above the neutral 50 level needed to confirm medium-term bullish continuation.
The Federal Reserve will hold its first policy meeting this week under new chair Kevin Warsh and is widely expected to keep interest rates unchanged, providing additional support for precious metals as rate-hike concerns ease. Nine of the central bank's 19 policymakers now believe they will need to raise the policy rate this year, according to projections published 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. "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. Major stock indexes fell, bond yields rose and the U.S. dollar extended gains on Wednesday after the Fed projections showed officials expect a hike in borrowing costs later this year amid increasing inflation concerns.
Domestic gold prices continue to fall sharply following the global market decline, with SJC gold bars trading at VND133.4-138.4 million per tael and Bao Tin Minh Chau gold rings at VND133.7-138.7 million per tael. According to VietNamNet, the sharp decline reflects both international and domestic factors, with market sentiment shifting from defensive to risk-taking. Economic expert Dr. Le Ba Chi Nhan attributes the correction to reduced demand for safe-haven assets and positive signals from trade negotiations among major economies. The cautious sentiment is reflected in the Nasdaq, which has pulled back more than 500 points after an unsuccessful attempt to break above its record highs, highlighting the broader market uncertainty surrounding geopolitical developments and monetary policy expectations.
