Gold holds ground amid rate hike fears

June 09, 2026 (MLN): Gold prices held its position on Tuesday as traders weighed the implications of a fragile Israel-Iran ceasefire while keeping a close eye on inflation data and the US Federal Reserve's interest rate outlook.

Currently, spot gold is slightly up 0.24% to $4,338.06 an ounce as of [4:32 pm] PST, according to data reported by Mettis Global.

Israel and Iran announced a halt to hostilities on Monday following an appeal by US President Donald Trump, though Tehran cautioned it would resume strikes if Israel pressed ahead with attacks on Hezbollah in Lebanon.

On the monetary policy front, Goldman Sachs projected the Fed would hold interest rates steady through 2026 and push back rate cuts to 2027, pointing to resilient economic activity and labour market strength, according to CNBC.

CME FedWatch data showed traders pricing in more than a 70% probability of a Fed rate hike by December.

Market participants are now awaiting May's US Consumer Price Index reading, due Wednesday, for further clues on the Fed's policy trajectory.

Among other precious metals, spot silver declined 0.7% to $67.71 per ounce, platinum shed 0.2% to $1,751.39, while palladium bucked the trend, rising 0.8% to $1,213.89.

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