Gold climbs over 1% as oil drops on US-Iran interim deal

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Gold edged lower ​on Thursday, pressured ​by hawkish policy signals ​from the Federal Reserve and a stronger dollar, while the U.S.-Iran ceasefire deal that dialed back inflation concerns and sent oil markets lower put a floor under prices.

Spot gold was down 0.6% at $4,232.01 an ounce. Prices touched their lowest since November 2025 last week.

U.S. gold futures fell 3.1% to settle at $4,245.90.

"The most significant thing was the hawkish tilt by the Fed yesterday. That has the dollar at ‌new highs for the year, which is keeping gold under some pressure," said Peter Grant, vice president and senior metals strategist at ​Zaner Metals.

The Fed held interest rates steady on Wednesday, but nine out of 19 policymakers see a need for a hike later in the year.

The U.S. dollar climbed after the policy statement and is ⁠currently at a one-year high, making greenback-priced bullion more expensive for overseas buyers.

Markets are now ‌pricing in an 88% chance of a U.S. rate ‌hike in December, according to the CME FedWatch Tool. This is higher than the 61% chance seen before the Fed's policy statement.

Gold, a non-yielding asset, usually struggles in a ⁠high interest rate environment. Prices have come under pressure since the start of ⁠the conflict in the Middle East, as rising fuel costs stoked ⁠inflation fears.

The U.S. and Iran released the text of an interim agreement their presidents signed to end their war on Wednesday, ​with U.S. President Donald Trump threatening ‌to resume attacks and kill Iranian officials if they failed to honor their commitments.

Brent futures sank to their lowest since March 2, the first day of trading after the initial U.S.-Israeli strikes on Iran, while WTI crude oil was at its lowest since March ​4.