Gold gains 2% after US-Iran peace deal eases geopolitical risk

June 15, 2026 (MLN): Gold prices climbed about 2% on Monday after reports that the United States and Iran had reached a preliminary understanding aimed at ending their conflict, a development that eased geopolitical tensions and pressured oil markets lower.

Currently, spot gold is slightly up 2.77% to $4,327.02 an ounce as of [10:06 pm] PST, according to data reported by Mettis Global.

Officials from both sides said on Sunday that a framework had been agreed to conclude hostilities, lift the U.S. blockade on Iran, and reopen the strategically important Strait of Hormuz.

The agreement is expected to be formally signed on Friday in Switzerland, according to a post on X by Pakistani Prime Minister Shehbaz Sharif.

The easing of tensions weighed on crude oil, which fell more than 4%, while the U.S. dollar slipped to a 10-day low. The weaker greenback made dollar-denominated gold more affordable for international buyers, adding further support to bullion prices, according to CNBC.

It noted that lower energy costs combined with a softer dollar were helping to temper inflation expectations, reducing pressure on interest rate outlooks.

However, they cautioned that the sustainability of the trend would depend on whether the peace agreement holds.

Gold had previously lost nearly 20% since the outbreak of the U.S. Israeli conflict with Iran earlier in the year, as the closure of the Strait of Hormuz had driven oil prices sharply higher and fueled inflation concerns.

Rising interest rate expectations during that period had also weighed on the non-yielding metal.

With the latest developments, expectations of a U.S. interest rate hike in December

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