Athira Sethu
Kochi, 16 June 2025
Gold prices rose on Monday as most investors sought safer havens to invest their money. This occurred due to renewed hostilities between Iran and Israel, causing people to be concerned about a wider war in the Middle East.
Gold is referred to as a “safe-haven” asset. This is because when there are major issues in the world, such as wars or economic issues, people tend to purchase gold for protection. Consequently, the price of gold tends to increase during times of uncertainty.
On Monday, the spot price of gold rose by 0.4% to $3,447.07 per ounce, a level it has not touched in nearly two months. U.S. gold futures also rose by 0.4% to $3,467.20.
The cause of the price increase is the conflict between Israel and Iran. Last weekend, each of the countries launched fresh attacks. The attacks resulted in individuals being killed or injured, and both sides cautioned civilians to be cautious, as more attacks were possible.
U.S. President Donald Trump stated on Sunday that he would like to see the two nations be able to resolve things peacefully, but continued by stating that occasionally war occurs prior to peace.
Meanwhile, the U.S. Federal Reserve holds its meeting on June 17–18 to discuss interest rates. Most analysts expect the Fed not to change interest rates at present. Yet, many are keeping their eyes out for any hint that rates could be cut later in the year, perhaps beginning in September.
Lower interest rates are generally a blessing for gold. When interest rates are low, it makes more sense to hold gold because individuals get less return on other investments such as savings accounts or bonds.
In other news, consumer confidence among U.S. residents increased for the first time in six months. This occurred as tensions in the trade relationship between China and the U.S. eased somewhat. Still, most households remain anxious about the future of the economy.
Other metals also declined:
- Silver fell 0.2% to $36.23 an ounce.
- Platinum increased 0.6% to $1,234.47.
- Palladium rose 0.9% to $1,036.58.
Investors are also waiting for Chinese, Indian, and European Union economic data that may impact the markets in the next few days.
