Gold futures on the New York Mercantile Exchange saw a marginal increase on June 16, with the most actively traded August 2026 contract closing up 0.03% at $4,353.00 per ounce.
The market was awaiting further details on a potential U.S.-Iran peace agreement, with gold managing to hold ground above the $4,300 per ounce level during the session.
Iranian Foreign Minister Hossein Amir-Abdollahian emphasized that the United States bears responsibility for implementing the Iran-U.S. agreement and stated that Israeli aggression against Lebanon "must be completely stopped."
According to a report on June 16, Israeli Air Force Commander Omer Tischler confirmed in an internal letter to troops that a planned large-scale airstrike on Iran, scheduled for the 8th of the month, was called off at the "last minute." The report indicated the strike was canceled by Israeli Prime Minister Benjamin Netanyahu after U.S. President Donald Trump urged him "not to escalate the conflict with Iran."
U.S. President Donald Trump described the situation between Israel and Lebanon as a "small conflict" and expressed confidence that the U.S.-Iran agreement would hold. However, he reiterated that Iran would face "devastating consequences" if its government attempted to acquire nuclear weapons.
A weaker U.S. dollar and falling oil prices contributed to gold's strength, marking its fourth consecutive session of gains. However, investors appeared reluctant to place large bets ahead of the formal signing of a final agreement on the 19th, leading to a lack of sustained buying interest in gold.
The market was also anticipating the Federal Reserve's monetary policy statement scheduled for June 17. While the consensus expectation is for the Fed to hold interest rates steady, any hawkish signals could potentially exert downward pressure on gold prices.
A report from the World Gold Council, the "2026 Central Bank Gold Reserves Survey," indicated that 45% of surveyed central banks expect to increase their gold reserves over the next 12 months. The report noted that over the past four years, central banks have added an average of 1,000 tonnes of gold annually, which is double the average rate of accumulation seen in the prior decade.
In other precious metals trading, the July silver futures contract fell 0.08%, closing at $70.12 per ounce.
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