Gold Prices Surge Amid U.S.-Iran Ceasefire and Fed Policy

Precious metal markets experienced significant volatility between June 13 and June 18, 2026, driven by geopolitical tensions and U.S. monetary policy. International gold prices rose from $4,219 to a peak of $4,348.93 per ounce as investors sought safe-haven assets during renewed military exchanges between the United States and Iran.

Donald Trump and Iranian President Masoud Pezeshkian eventually digitally signed a memorandum of understanding to end a three-and-a-half-month conflict. The agreement extends an April ceasefire by 60 days, reopens the Strait of Hormuz, and establishes a framework for nuclear negotiations. While the deal initially boosted market optimism, Trump warned the agreement was not final and threatened renewed military action if his expectations were not met.

Simultaneously, markets reacted to the first policy meeting of Federal Reserve Chair Kevin Warsh. While some investors expected borrowing costs to remain steady, subsequent comments from Warsh regarding potential rate hikes in 2026 strengthened the U.S. dollar, weighing on bullion prices.

Regional trends diverged sharply. Gold prices in Pakistan surged, reaching a high of Rs 455,136 per tola, before stabilizing and slightly declining by June 18. In contrast, gold and silver prices in India fell for three consecutive sessions, dropping to approximately Rs 1.53 lakh per 10 grams as investors shifted toward domestic equity markets.