Gold took a sharp hit in early June, dropping more than 2% as hopes for a US-Iran peace deal crumbled. Spot prices fell to around $4,463 per ounce, marking weekly losses of about 1.6%.
Since tensions with Iran escalated in late February 2026, gold has declined approximately 14%.
What happened to the peace premium
The sell-off traces directly to shifting expectations around diplomatic talks between the US and Iran. Earlier rounds of tentative discussions had briefly lifted gold prices, as markets priced in the possibility of de-escalation. When those prospects dimmed, so did gold’s appeal.
Gold futures settled near $4,505 per ounce on June 4, following a bout of heightened volatility tied to ceasefire talk announcements.
