Gold Rebounds from One-Week Low as Iran Cites Progress in Peace Talks

23/06/2026 04:43 AST

Gold rebounded from a more than one-week low on Monday, as oil prices fell after Iran cited progress in US-Iran peace talks, though bets of higher interest rates after hawkish US Federal Reserve signals weighed on the metal's outlook.

Spot gold was up 0.8% at $4,194.99 per ounce, as of 0608 GMT, after falling to its ?lowest level ?since June 11 on Friday. US gold futures ?for ?August delivery fell ?0.8% to $4,213.10.

The first round of talks between high-ranking US 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 US 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."

Brent crude futures fell more than 1% 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, Fed 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% chance of a rate hike in December, from 61% before the Fed's meeting, according to the CME FedWatch Tool.

Spot silver rose 2.4% to $66.48 per ounce, platinum gained 0.7% to $1,675.91, and palladium was up 1.8% at $1,280.45.

Asharq Al Awsat