Global Gold Prices Surge Again, Market Awaits the Fed

Global gold prices continued their upward trend on Tuesday morning (16/6/2026), remaining in positive territory after strengthening for three consecutive days. According to Refinitiv data, as of 06:30 WIB, gold was trading at US$4,315.31 per troy ounce, up 0.22%. This extended the rally from Monday’s close at US$4,305.83 per troy ounce. The precious metal received a boost from easing market concerns after the United States and Iran reportedly agreed on a framework to end the war. The peace news prompted markets to reduce fears over surging oil prices, inflationary pressures, and the risk of further US interest rate hikes. Previously, the US-Iran conflict had weighed on gold as soaring energy prices stoked inflation fears, raising the prospect that the US Federal Reserve would remain aggressive in raising interest rates. Such conditions typically dampen gold’s appeal since the metal offers no yield compared to bonds or deposits. However, the peace framework reversed market expectations. Oil prices fell, US bond yields weakened, and the dollar index came under pressure. A weaker dollar makes gold, which is priced in the US currency, cheaper for buyers holding other currencies. The likelihood of a US rate hike also diminished, with market participants cutting the probability of a December hike to around 58% from nearly 70% the previous week. The agreement was reportedly formalised in a memorandum of understanding signed by US President Donald Trump, Vice President JD Vance, and the Iranian parliamentary speaker. An official signing ceremony is expected in Geneva, Switzerland, on Friday. With geopolitical risks receding, the market is reassessing gold’s direction. All eyes are now on the Federal Reserve’s policy meeting on 16-17 June 2026. Investors will scrutinise Chair Kevin Warsh’s tone regarding the future path of interest rates. A cautious signal could help gold sustain its gains, while a hawkish stance might renew pressure on the metal. Additional US economic data, including retail sales, housing, and manufacturing figures, will also provide clues on the economy’s health and the Fed’s next steps. For now, gold remains on an upward path, though volatility could increase if the Fed’s statements deviate from market expectations. Meanwhile, ‘Rich Dad Poor Dad’ author Robert Kiyosaki expressed a bullish outlook on gold, noting its recent surge of over US$100 in a single day. With prices around US$4,300 per ounce, he forecast gold could reach US$35,000 per ounce by 2035, citing a shift by central banks away from US debt towards the metal. He cautioned, however, that investors should remain prudent amid bond market uncertainty and potential euphoria in alternative assets.