Spot gold rises amid escalating Israel-Iran tensions

June 16, 2025 (MLN): Gold rose on Monday, as intensified clashes between Israel and Iran over the weekend stoked fears of a broader regional conflict.

Spot gold down by 0.49% to $3,416.13 an ounce, as of 12 pm PST, after hitting its highest level since April 22 earlier in the session.

U.S. gold futures advanced 0.3% to $3,461.90.

Israel and Iran launched fresh attacks on Sunday, killing and wounding civilians and raising concerns of a broader regional conflict, with both militaries urging civilians on the opposing side to take precautions against further strikes.

U.S. President Donald Trump said he hopes Israel and Iran can broker a deal, but said sometimes countries have to fight it out first.

Gold is often considered a safe-haven asset during times of geopolitical and economic uncertainty, as per CNBC.

Investors this week will look forward to a host of central bank monetary policy decisions, with the spotlight on the U.S. Federal Reserve on Wednesday.

The U.S. central bank is widely anticipated to keep interest rates steady, with markets awaiting signals on potential rate cuts in the months ahead.

Futures markets suggest expectations for two rate cuts by year-end, possibly starting in September, bolstered by tame inflation data last week. 

Elsewhere, spot silver was steady at $36.29 per ounce, platinum rose 0.4% to $1,233.87, while palladium gained 1.3% to $1,040.96.