Gold surges early Monday to a near one-week high on news of the U.S. and Iran peace deal. President Trump announced yesterday that the U.S. reached a preliminary peace deal to end the conflict that has closed the Strait of Hormuz and caused oil and the prices of other goods to soar.
Details weren’t immediately available, and key mediator Pakistan indicated that the agreement would be signed Friday in Switzerland, according to the Associated Press. U.S. President Donald Trump posted about the agreement on social media Sunday and said he would immediately remove the U.S. Navy’s blockade of the strait, though he later indicated the strait wouldn’t open until Friday’s signing. An Iranian official also said on state television that Iranian implementation would begin Friday.
August gold futures dropped 2.9% last week to settle at $4,238.80 an ounce on Comex, though the most-active contract rose 3% Friday. 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 $145.5 (+3.43%) an ounce to $4384.30 and the DG spot price is $4362.70.
The Iran conflict has driven up the price of U.S. goods, sending annual inflation as measured by the consumer price index to the highest level in more than three years in May data released last week. The report spurred talks about a possible Federal Reserve interest rate hike. That has pressured gold prices, while news of the initial deal has sent prices climbing.
Investors will be closely watching for the statement from the Fed on Wednesday at the end of its two-day scheduled policy meeting for the central bank’s take on the economy and likely next moves. This will be the Kevin Warsh press conference as the Fed Chair.
Almost all the investors tracked by the CME FedWatch Tool are betting on rates staying unchanged Wednesday and through the end of the year. Last week, most had anticipated a rate hike before 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.
Front-month silver futures fell 1.6% last week to settle at $67.97 an ounce on Comex, though the July contract rose 6.2% Friday. 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 July contract is currently up $3.126 (+4.60%) an ounce to $71.100 and the DG spot price is $70.97.
Spot palladium rose 2.7% last week to $1,287.00 an ounce and after gaining 2.3% Friday. 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 up $77.50 an ounce to $1367.00.
Spot platinum lost 5.1% last week to $1,707.00 an ounce but advanced 1% Friday. 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 up $100.70 an ounce to $1814.80.
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