Gold Heads for Second Weekly Drop

2026-06-12 11:11 By Joana Ferreira 1 min. read

Gold traded around $4,200 per ounce on Friday, as oil prices fell on growing optimism for a US-Iran peace deal.

However, bullion remained on track for a second consecutive weekly decline due to expectations of higher interest rates.

US President Donald Trump suggested a deal could be reached as early as this weekend, though Tehran stated no final decision had been made.

Since the Iran conflict began, gold has faced pressure amid concerns that surging energy costs could drive inflation higher, reinforcing expectations that central banks will maintain elevated interest rates.

Supporting this view, the European Central Bank raised interest rates on Thursday for the first time since 2023 and upwardly revised its inflation forecasts for 2026 and 2027.

Additionally, US producer prices climbed 6.5% year-over-year in May, underscoring the inflationary impact of the Middle East energy shock and strengthening expectations of a Federal Reserve rate hike this year.



News Stream
Gold Heads for Second Weekly Drop
Gold traded around $4,200 per ounce on Friday, as oil prices fell on growing optimism for a US-Iran peace deal. However, bullion remained on track for a second consecutive weekly decline due to expectations of higher interest rates. US President Donald Trump suggested a deal could be reached as early as this weekend, though Tehran stated no final decision had been made. Since the Iran conflict began, gold has faced pressure amid concerns that surging energy costs could drive inflation higher, reinforcing expectations that central banks will maintain elevated interest rates. Supporting this view, the European Central Bank raised interest rates on Thursday for the first time since 2023 and upwardly revised its inflation forecasts for 2026 and 2027. Additionally, US producer prices climbed 6.5% year-over-year in May, underscoring the inflationary impact of the Middle East energy shock and strengthening expectations of a Federal Reserve rate hike this year.
2026-06-12
Gold Holds Gains on Iran Deal Hopes
Gold eased below $4,200 an ounce on Friday but held most of the gains from the previous session, as growing optimism over an imminent peace deal between the US and Iran eased concerns about persistent inflation and potential interest rate hikes. President Donald Trump said a deal with Iran could be reached as early as this weekend after postponing planned attacks and warning that the US could target the country's oil infrastructure. Iran's semi-official Fars news agency also reported that Tehran was likely to accept the agreement, although no final text has been approved. Meanwhile, the ECB raised interest rates on Thursday for the first time since 2023 and lifted its inflation forecasts for 2026 and 2027. Data also showed US producer prices climbed 6.5% year-on-year in May, highlighting the inflationary effects of the Middle East energy shock and reinforcing expectations of a Federal Reserve rate increase this year.
2026-06-11
Gold Slips as US PPI Jumps
Gold gave up most of its gains to trade at $4,080 per ounce on Thursday, their lowest level since November 2025, as investors processed fresh US PPI data, the European Central Bank’s rate hike, and intensifying Middle East tensions. US producer prices surged 6.5% year-over-year in May, the highest since November 2022 and above forecasts of 6.4%, underscoring the mounting impact of the energy-price shock from the Strait of Hormuz closure on the US economy. Combined with earlier data showing consumer prices rising at the fastest pace in three years, Thursday’s figures are likely to strengthen calls for the Federal Reserve to raise interest rates in 2026. Meanwhile, the ECB raised interest rates for the first time since 2023 and upwardly revised its inflation forecasts for 2026 and 2027. Adding to geopolitical concerns, US President Trump vowed further strikes on Iran and threatened to take control of its key energy infrastructure, including Kharg Island.
2026-06-11