Gold Falls to $4,041.90 as Fed Rate-Hike Bets Offset Iran Diplomacy on Monday

According to Kitco NewsWire, spot gold fell to $4,041.90 per ounce, down 1.14%, early Monday as traders balanced renewed U.S.-Iran diplomacy against persistent Federal Reserve rate-hike expectations. Spot silver declined 1.65% to $58.08. The Federal Reserve's June projections lifted the median 2026 funds-rate path to 3.8% from 3.4% in March, keeping precious metals under pressure despite the Strait of Hormuz tensions easing.

U.S. and Iran agreed to halt attacks and plan talks Tuesday in Doha on managing the waterway, allowing vessels to move freely for now. However, the underlying dispute remains unresolved. Oil prices rose on the news, with Brent crude near $72.40 and WTI near $69.64, while higher crude also feeds the Fed-inflation trade, limiting gold's safe-haven bid.