Gold Spot rose 0.8% to settle at $4,191.43 per ounce on Monday, while the near‑month gold futures slipped 0.9% to $4,209.70 per ounce. Silver increased 0.3% to $65.1065 per ounce and platinum gained 0.6% to $1,677.65 per ounce. Benchmark Copper Futures on the London Metal Exchange fell 0.7% to $13,595 per ton, whereas U.S. Copper Futures rose 0.5% to $6.3678 per pound.
The Federal Reserve released a more hawkish Summary of Economic Projections than expected, with the dot‑plot indicating that at least half of the FOMC participants now anticipate a 25‑basis‑point rate hike in 2026, reversing a prior outlook of two quarter‑point cuts. Bank of America stated it no longer expects any Fed rate cuts until 2028. New Fed Chair Kevin Warsh announced the formation of five task forces to examine core monetary‑policy operations, reinforcing market expectations of higher rates that typically weigh on non‑yielding assets such as gold.
David Morrison, senior market analyst at Trade Nation, said markets have priced in a high probability of a Fed rate increase later this year, which is pressuring gold, though further gains remain possible but speculators are wary of a pull‑back toward the $4,000 support level.
On the geopolitical front, the United States highlighted progress in peace talks with Iran, noting that the critical Strait of Hormuz was open. President Donald Trump signed a memorandum of understanding with Iran during a G7 visit to France, halting military operations on all fronts, including Lebanon, and initiating a 60‑day negotiation window. The Strait of Hormuz was reopened without charges for this period, and Iran pledged not to develop nuclear weapons, agreeing to dispose of enriched material through a mutually agreed mechanism. However, renewed fighting between Israel and Iran‑backed Hezbollah in Lebanon prompted Tehran to close the strait again. The situation de‑escalated after U.S. and Iranian representatives met in Switzerland at Lake Lucerne, with mediators from Qatar and Pakistan; U.S. Vice President JD Vance said the talks secured four accomplishments, chiefly a mechanism to keep the Strait of Hormuz open.