Spot gold prices closed on 15/6 up 90 USD, reaching 4,308 USD an ounce. During the session, prices peaked at 4,370 USD, a high not seen in over a week. This marked the third consecutive session of gains for the precious metal. On the morning of 16/6, prices continued their upward trend, reaching 4,310 USD.

Global gold prices have increased for three consecutive sessions. *Chart: Kitco*

The market rallied after the US and Iran jointly announced an agreement on terms to cease hostilities. This development eased concerns about rising interest rates. The Dollar Index also fell 0,2% on 15/6, making gold more affordable for buyers using other currencies.

Reuters quoted a US official who stated that a memorandum to end hostilities was signed by US President Donald Trump, Vice President JD Vance, and the Chairman of the Iran National Assembly. Earlier, announcements from both sides indicated that the document would be formally signed at a ceremony in Geneva on 19/6.

Phillip Streible, chief market strategist at Blue Line Futures, noted, "The gold market is gradually moving past the conflict. News of the peace agreement has driven down US treasury yields, the USD, and oil prices. These factors represent the most significant risks to inflation."

Gold had faced pressure since the Middle East conflict began. High energy prices fueled inflation concerns, increasing the likelihood of central banks raising interest rates. This is unfavorable for gold, which does not yield interest.

Investors have now lowered their forecast for the probability of the US Federal Reserve (Fed) raising interest rates in December to 58%, down from nearly 70% last week, according to the CME FedWatch tool. Attention has now shifted to the Fed's policy meeting on 16-17/6, the first under the leadership of new Chairman Kevin Warsh.

Streible remarked, "The next movement in gold prices will depend entirely on Warsh and his statements regarding the interest rate roadmap."

Beyond gold, other precious metals also saw price increases. Silver closed on 15/6 up nearly 3% to 70 USD an ounce. Palladium and platinum experienced similar gains.

Ha Thu (according to Reuters, Kitco)