Gold Rebounds from Lows, but Bank of America Pours Cold Water on 'Sky-High' Target

Gold prices saw a rebound on Monday, June 22, 2026, recovering from a weekly low. The uptick was primarily driven by developments in peace talks between the United States and Iran, which helped suppress oil prices and alleviate some inflationary worries. However, the positive momentum for gold faces scrutiny from financial institutions.

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Energy prices remain the short-term key factor driving the precious metals market.

Spot gold prices rose by 0.5% to $4,182.39 per ounce, after touching a low on June 11. August gold futures, however, closed down 1% at $4,202.70 per ounce. Ole Hansen, an analyst at Saxo Bank, noted that energy prices remain a key short-term driver for precious metals. He pointed to ongoing, albeit complex, negotiations between the U.S. and Iran in Switzerland as a factor pushing oil prices down, which in turn supports gold.

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We are seeing that the negotiations between the US and Iran in Switzerland, although going through ups and downs, are still moving in a direction that could lead to an agreement that brings more crude oil to the market.

U.S. Vice President JD Vance indicated that the negotiations with Iranian officials in Switzerland laid a "good foundation" for a potential peace agreement. Following this statement, oil prices dropped by over 3%. In U.S. monetary policy, market expectations for a December interest rate hike have significantly increased, with the CME FedWatch Tool showing an 89% probability, up from 61% before the Federal Reserve's decision.

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good foundation

Despite the rebound, Bank of America recently revised its outlook, suggesting that its previous $6,000 target for gold now appears difficult to achieve. The bank indicated that reaching such a target would likely require the market to fully discount interest rate hikes. Nevertheless, Bank of America acknowledged that the underlying factors supporting the initial bullish view, particularly unconventional U.S. macroeconomic policies, remain in place. In other precious metals trading, spot silver increased by 0.5% to $65.21 per ounce, while spot platinum rose 0.3% to $1,668.43 per ounce. Spot palladium, however, saw a slight decrease of 0.1% to $1,256.68 per ounce.

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the $6,000 target for gold now appears unlikely to be realized.