Gold rebounds from six-month low but rate-hike fears cap …

On June 11, 2026, gold prices experienced a slight rebound to $4,097.01 per ounce after hitting a six-month low earlier in the day. This increase was driven by investors covering short positions, although concerns about rising inflation and potential U.S. interest rate hikes limited gains. The ongoing conflict between the U.S. and Iran continues to affect the market, with gold prices dropping over 22% since late February. Analysts predict that unless the Federal Reserve indicates a rate increase at its upcoming meeting, gold could start recovering. Other precious metals also saw price increases, with spot silver rising 1.3% to $64.49 per ounce.

Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv

A gold necklace is displayed on a counter for cutomers to look at inside a jewellery store

A gold necklace is displayed on a counter for cutomers to look at, inside a jewellery store in the old quarters of Delhi, India, May 11, 2026. REUTERS/Bhawika Chhabra/File Photo Purchase Licensing Rights, opens new tab

Summary
US and Iran exchange fire for a second straight day
Traders see 67% chance of US rate hike in December
May U.S. producer price index data due at 1230 GMT

June 11 (Reuters) - Gold prices rose on Thursday, rebounding from a ‌six-month low, as investors covered their short positions, though concerns around higher inflation and U.S. interest rates capped gains.

Spot gold rose 0.6% to $4,097.01 per ounce at 0836 GMT after hitting its lowest point since November 21 earlier in the session.

Get the latest news from India and how it matters to the world with the Reuters India File newsletter. Sign up here.

U.S. gold futures for August delivery were down 0.4% at $4,118.

"Gold is clearly significantly oversold just now and it remains to be seen ⁠whether this is a recovery as such or simply short positions taking profit," independent analyst Ross Norman said.

On the geopolitical front, the U.S. and Iran traded attacks for a second straight day, with President Donald Trump vowing further strikes if Tehran does not immediately agree to a peace deal.

Spot gold has dropped more than 22% since the U.S.-Israeli war on Iran kicked off in late February, which was followed by a jump in oil prices.

Elevated crude oil prices can accelerate inflation and keep interest rates higher for longer. While gold is viewed as a hedge against inflation, higher ‌interest rates ⁠tend to weigh on the metal.

Data on Wednesday showed U.S. consumer inflation increased at its fastest pace in three years in May, boosted by surging prices for energy-related products.

The Federal Reserve is expected to hold rates steady in Kevin Warsh's first meeting as Fed chair next week, with a majority of economists in a Reuters ⁠poll expecting interest rates to remain unchanged this year.

However, traders are currently pricing a 67% chance of a U.S. rate hike in December, according to the CME Group's FedWatch tool. FEDWATCH

"The market now firmly expects the Fed ⁠to raise interest rates before the end of the year," Commerzbank analyst Carsten Fritsch said. "If next week's meeting does not signal an upcoming increase in interest rates, the price of gold could ⁠start to recover."

Investors now await the May producer price index reading due at 1230 GMT to gauge the Fed's monetary policy stance.

Spot silver rose 1.3% to $64.49 per ounce, platinum gained 0.8% to $1,678.08 and palladium climbed 3% to $1,249.58.

Reporting by Noel John in Bengaluru; Editing by Thomas Derpinghaus

Our Standards: The Thomson Reuters Trust Principles., opens new tab

X
Facebook
Linkedin
Email
Link

Purchase Licensing Rights

World

Few Americans back Trump's White House cage match plan, Reuters/Ipsos poll finds

United Statescategory · June 11, 2026 · 6:04 AM EDT · 5 mins ago

Few Americans, including only a third ‌of Republicans, approve of President Donald Trump's plan to hold mixed martial arts cage matches at the White House on Sunday to celebrate U.S. history, a Reuters/Ipsos poll found.

Businesscategory On brink of IPO, Musk's SpaceX already a household name, Reuters/Ipsos poll finds

6:04 AM EDT

Legalcategory US screwworm cases test months of federal preparation

6:03 AM EDT

Worldcategory Exclusive: Kash Patel on the FBI's defining test: securing the World Cup

6:02 AM EDT

Africacategory A cracked coffin, a funeral and the hunt for Ebola's patient zero

6:00 AM EDT

Read Original at Reuters →

Gold rebounds from six-month low but rate-hike fears cap gains

Read Next

World

Few Americans back Trump's White House cage match plan, Reuters/Ipsos poll finds