Gold rebounds amid geopolitical hopes, lower bond yields

12 June 2026

Market comments on behalf of Eric Chia, Financial Markets Strategist at Exness

Gold prices continued to see some volatility after a rebound yesterday. While markets reacted positively to the cancellation of US strikes in the Middle East and signs of diplomatic progress, the metal could remain exposed to any deterioration in the geopolitical situation and an increase in inflation concerns.

A slide in US Treasury yields provided some relief to the metal. A more sustained retreat in bond yields could help precious metals recover after multiple months under pressure. However, the trend will depend on the next steps in the diplomatic process between the US and Iran, as a final deal could provide more favorable conditions for gold with lower oil prices and softer inflationary pressures.

However, the market could continue to face headwinds from expectations of tighter monetary policy conditions. In Europe, the European Central Bank raised interest rates. Meanwhile, in the United States, the Federal Reserve is expected to leave interest rates unchanged, with a potential hike later on. In Japan, markets are also increasingly anticipating a policy tightening move at next week’s meeting.

 

Zaid Barem / ymm