Gold And Silver Rebound On Friday After Five Sessions Of Losses

Gold and silver recovered sharply on Friday after falling for five consecutive sessions, as President Donald Trump called off another round of military strikes against Iran and signalled that a memorandum of understanding with Tehran is in its final shape.

In morning trade on 12 June 2026, gold futures rose $103.55, or 2.52%, to $4,217.55 per ounce. Silver futures also jumped $3.074, or 4.80%, to $67.075 per ounce.

What Changed

Trump posted on social media that progress has been made toward a deal with Iran before telling reporters in the Oval Office that a memorandum of understanding is in final shape and could be signed as early as this weekend, potentially in Europe. The statement pulled safe-haven demand back into precious metals after a week of selling driven by rate hike fears.

The five-session losing streak had been driven by a different calculus. Escalating Middle East tensions were pushing inflation expectations higher, strengthening the case for the US Federal Reserve to keep monetary policy tight.

The Macro Pressure That Was Weighing On Metals

The broader backdrop remains challenging for precious metals even with Friday's bounce:

• US producer prices rose 6.5% year-on-year in May, the sharpest increase since November 2022 and above the 6.4% forecast.

• The European Central Bank raised interest rates, becoming one of the first major central banks to respond directly to inflation driven by the Iran conflict.

• Australia and the Philippines have also raised rates since the war began.

• Markets are now watching policy decisions in larger economies for similar moves.

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The Volatility Pattern

The back-and-forth between de-escalation hopes and conflict fears has made precious metals exceptionally volatile since the war began. Every hint of a deal sends prices higher. Every military exchange sends them lower. Whether the memorandum of understanding materialises this weekend will determine whether the recovery holds or reverses again early next week.

Sources:

Livemint

BBC