Gold erases losses after ceasefire hopes emerge; strong US jobs data caps gains

Gold  |  2026-06-08 10:28:13   |   By

Gold ‌steadied on Monday as prospects for a potential Israel-Iran ceasefire helped the metal rebound from session lows, though strong U.S. jobs data boosted expectations of a Federal Reserve rate hike and limited the upside.

June 8 (Reuters) - Gold ‌steadied on Monday as prospects for a potential Israel-Iran ceasefire helped the metal rebound from session lows, though strong U.S. jobs data boosted expectations of a Federal Reserve rate hike and limited the upside.

Spot ​gold was steady at $4,330.98 per ounce by 9:27 a.m. ET (1327 GMT), after hitting ​its lowest level since March 23 earlier in the session at $4,268.39.

U.S. President Donald Trump said on Monday ​that both Israel and Iran were looking to 'do an immediate ceasefire' and that final negotiations on 'peace' were proceeding.

'We rebounded off ​the overseas lows just on news that perhaps there's a new ceasefire between Iran and Israel. So that's taken a little bit of pressure off the downside,' said Peter Grant, vice president and senior ​metals strategist at Zaner Metals.

While gold is traditionally sought as a safe haven during conflict, a ​peace deal would reduce energy-driven inflation risks and ease the pressure on central banks to keep interest rates high. Higher ‌interest ⁠rates tend to weigh on non-yielding gold.

Limiting the upside for gold prices, the dollar traded around its highest level in nearly two months after a stronger-than-expected jobs report last week boosted expectations for a year-end interest rate hike.

A stronger dollar makes greenback-priced commodities more expensive ​for other currency-holders.

Traders are ​now pricing in a ⁠43% chance of a quarter-point rate hike in December, up from just about 14% a month ago, according to the CME Group's FedWatch, opens new tab ​tool.

Investors now await U.S. Consumer Price Index (CPI) data on Wednesday and ​Producer Price ⁠Index (PPI) data on Thursday for further clues on the Federal Reserve's interest rate path.

'Gold may next test the psychologically-important $4,000 line for critical support if markets receive hotter-than-expected CPI prints this week, ⁠or ​a decidedly hawkish FOMC next week,' said Han Tan, ​chief market analyst at Bybit.

Spot silver was up 0.9% at $68.44 per ounce, platinum lost 1.1% to reach $1,757.15, while palladium ​fell 0.9% to $1,215.25.