Gold was little changed early Wednesday as investors awaited the final details on the proposed U.S.-Iranian peace accord as well as the latest outlook on the economy from the Federal Reserve.
The Iranian deal is expected to be revealed and signed on Friday, but initial reports have indicated that it may involve Iran getting access to $300 billion to rebuild – something U.S. President Donald Trump has denied – as well as mandating an Israeli withdrawal from Lebanon. Fed policymakers are meeting for the first time this week under new Chair Kevin Warsh and are expected to issue a policy statement Wednesday afternoon.
The Iran war has sent inflation soaring and has boosted bets on an interest rate hike at the end of this year, though an end to the conflict may ease that speculation. The war also caused gold prices to drop as oil prices climbed, though the prospect of peace caused the yellow metal to rally.
August gold futures edged up $2.80 Tuesday to settle at $4,354.40 an ounce on Comex, and the most-active contract rose 2.7% in the first two days of the week. Bullion dropped 0.8% in May after losing 1% in April and sliding 11% in March. It rallied 64% last year. The August contract is currently up $0.90 (+0.02%) an ounce to $4355.50 and the DG spot price is $4339.10.
A U.S.-Iran peace deal promises to reopen the Strait of Hormuz, a critical oil shipment waterway, thereby easing prices for energy as well as other goods. Annual inflation as measured by the consumer price index to the highest level in more than three years in May data released last week. Slowing inflation would also reduce pressure on the Fed to tighten monetary policy.
Almost all the investors tracked by the CME FedWatch Tool are betting on rates staying unchanged Wednesday, though they see an increase by the end of the year. The Fed has kept interest rates unchanged this year after three previous rate cuts. The Fed in April held interest rates steady at 3.5% to 3.75%, as expected, but policymakers were unusually divided. The June 16-17 meeting of Fed policymakers will be the first under new Chair Kevin Warsh.
September silver futures fell 0.2% Tuesday to settle at $70.54 an ounce on Comex. The front-month contract, which rolled to September from July this week, gained 3.8% in the first two days of the week. The most-active contract touched a record above $115 in January. Silver gained 2.5% in May after losing 1.2% in April and dropping 20% in March. It rose 141% last year. The September contract is currently up $0.351 (+0.50%) an ounce to $70.890 and the DG spot price is $70.28.
Spot palladium rose 0.7% Tuesday to $1,366.00 an ounce and has gained 6.1% so far this week. Palladium fell 12% last month after rising 3.2% in April and tumbling 17% in March. Palladium rose 74% last year. Currently, the DG spot price is down $4.20 an ounce to $1364.50.
Spot platinum increased 2.3% Tuesday to $1,819.80 an ounce and advanced 6.6% in the first two days of the week. Platinum dropped 3.2% in May after gaining 1.3% in April and declining 17% in March. Platinum increased 122% in 2025. The DG spot price is currently down $20.20 an ounce to $1797.50.
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