Gold up 3.17% amid softer inflation concerns

June 16, 2026 (MLN): Gold prices edged higher on Tuesday as easing geopolitical tensions in the Middle East reduced expectations of further U.S. monetary tightening, while investors turned their attention to the upcoming U.S. Federal Reserve policy declaration.

Currently, spot gold is slightly up 3.17% to $4,344.70 an ounce as of [3:06 pm] PST, according to data reported by Mettis Global.

The precious metal found support after U.S. President Donald Trump declared that Washington and Tehran had reached an agreement aimed at ending hostilities in the Persian Gulf.

Trump said the deal had been finalized and would be formally signed later this week, adding that maritime traffic through the Strait of Hormuz would remain unrestricted, according to CNBC.

The agreement has helped calm concerns over potential disruptions to global energy supplies, leading to a decline in oil prices and easing fears of renewed inflationary pressures.

Market participants have adjusted their outlook for U.S. monetary policy following the diplomatic breakthrough.

According to CME FedWatch data, the probability of a Federal Reserve rate increase in December has fallen to around 56%, compared with nearly 70% before news of the agreement emerged.

Investors are now closely monitoring a busy week for global central banks, with particular focus on the Federal Reserve’s policy decision due on Wednesday. The meeting will be the first chaired by Kevin Warsh since assuming leadership of the U.S. central bank.

Market attention will also center on the Fed’s policy statement and future guidance for clues on the direction of interest rates. Analysts believe any indication of a more accommodative policy stance could provide additional support to gold prices.

Meanwhile, confidence in gold as a reserve asset continues to strengthen among central banks.

A recent survey by the World Gold Council found that 45% of reserve managers expect their institutions to increase gold holdings over the next year, showing continued demand for the metal as a strategic store of value amid global economic uncertainty.

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