June 16, 2025 | Global Markets — Gold prices rose for the fourth consecutive session on Monday, hitting their highest level in nearly two months, as renewed military clashes between Iran and Israel triggered a surge in safe-haven buying.
At 0246 GMT, spot gold was up 0.3% to $3,442.09 an ounce, after reaching levels not seen since April 22. U.S. gold futures mirrored the gains, also rising 0.3% to $3,461.90.
“It’s the joint political risk premium that’s rising due to the Iran-Israel conflict at this point that has boosted safe-haven demand for gold,” said Kelvin Wong, Senior Market Analyst, Asia Pacific at OANDA.
He added that with gold now trading above the key $3,400 mark, short-term bullish momentum remains intact. “We are seeing resistance at $3,500, and there is potential for gold to hit new highs above that level,” Wong noted.
Geopolitical Tensions Fueling Investor Anxiety
On Sunday, both Israel and Iran launched new attacks, leading to multiple civilian casualties and injuries. The latest escalation has heightened concerns of a broader regional conflict, prompting investors to move towards traditionally safer assets like gold.
U.S. President Donald Trump said he hopes the two nations can come to a diplomatic resolution, though he acknowledged that sometimes “countries have to fight it out first.”
Market Eyes U.S. Federal Reserve Decision
Beyond geopolitics, investors are now shifting attention to monetary policy, with the U.S. Federal Reserve expected to announce its rate decision on Wednesday.
Markets widely anticipate that the Fed will hold interest rates steady, as recent inflation data has been largely in check. Futures markets are currently pricing in two rate cuts by year-end, with the first potentially arriving in September, according to CME’s FedWatch tool.
Other Precious Metals
- Silver: Spot prices held steady at $36.29 per ounce
- Platinum: Gained 0.4% to $1,233.87
- Palladium: Rose 1.3% to $1,040.96