Gold has had a turbulent week, and it ended in recovery. After sliding hard on Wednesday following a hawkish Federal Reserve decision, the metal clawed back above a key level on Thursday. The signed Iran US peace deal eased pressure on the market. For UAE buyers tracking gold prices in UAE daily, this week is a useful case study in how quickly sentiment can swing both ways.
A Volatile Week, Now Recovering
Gold was trading near USD 4,300 per ounce on Wednesday after a nearly 2 percent decline on Tuesday. As the Federal Reserve hinted it was looking more and more likely to keep interest rates elevated.
Related Stories
Fed Chair Kevin Warsh emphasized that inflation has been persistently higher than the central bank’s 2 percent target for many years. It reiterated its pledge to bring it back to the central bank’s 2 percent target. But that hawkish sentiment weighed on gold during the Wednesday session, despite the signature of the Versailles accord by Trump on the same day.
But it changed on Thursday morning. The US dollar index was declining. Optimism for a peace deal between the United States and Iran prevailed over the Fed’s hawkish tone. It led gold to turn around and post a gain of USD 4,300.
Markets took relief that the war between the US and Iran that had been going on for nearly four months. It has been resolved and the Strait of Hormuz re-opened. While also losing the dollar’s safe haven status as there was renewed optimism.
Where Gold Prices Stand Right Now
In daily trade, gold averaged around USD 4,209 per ounce on June 18. But it recovered to USD 4,312 in the Asian session on Thursday. Gold continues to trade below its 21-, 50-, 100- and 200-day moving averages on the daily chart.
While, this week’s bounce is welcome short-term relief, the broader trend remains bearish. To put things in perspective, gold reached a record high of USD 5,602 an ounce on January 29, 2026. Today’s price remains well below that peak.
Why the Signing Matters for Gold
The mechanics here are simple. War drives inflation fears higher through oil prices. Peace removes that fear. Trump confirmed the US is lifting its naval blockade on Iranian ports and that the Strait of Hormuz will reopen permanently toll-free once the agreement takes full effect.
Lower oil costs mean lower inflation pressure, and lower inflation pressure means less reason for the Fed to keep hiking rates. That is good news for gold, which carries no yield and competes directly against rate expectations.
Gold Prices: What’s Next?
Gold resistance is at USD 4,400 and if it breaks above that, then it will clear the 200-day moving average at USD 4,454 as well as the USD 4,500 and the 50-day moving average at USD 4,580.
On the downside, a break down from USD 4,300 would focus on the psychological USD 4,250 level, followed by USD 4,200 and the June 11 swing low at USD 4,023. The analysts forecast that gold price will move in the range of USD 4,186 – USD 4,933 until the end of June and are targeting gold price at USD 4,516 for the end of the month.
For Dubai buyers, gold prices in UAE remain in a recovery phase rather than a confirmed rally. The next few sessions, as markets digest both the Fed’s rate stance and the durability of the Iran peace deal, will determine which direction wins out.
Read More: Is the War Finally Over in Letter and Spirit? Here’s the 14-point Iran US MoU
