Gold prices are declining amid escalating tensions in the Middle East and awaiting the Federal Reserve's decision.

Gold prices witnessed a slight decline on Monday, June 16, after being close to their highest levels in two months, amid escalating tensions between Israel and Iran, boosting demand for safe havens and igniting fears of the conflict widening in the region.

The price of gold in spot trading decreased by 0.22% to settle at $3424.64 per ounce, after touching levels close to its highest price since April 22. In the futures market in the US, prices dropped by 0.16% to $3447.20 per ounce.

This decline comes at a time when the region is witnessing escalating tensions after a new round of mutual attacks between Israel and Iran, prompting both sides to urge civilians to take necessary precautions in anticipation of further escalation.

In a related context, US President Donald Trump expressed hope for a ceasefire, stating that "sometimes countries have to fight to the end."

On the other hand, investors are awaiting the Federal Reserve meeting scheduled for June 17 and 18, with the final decision expected to be announced on Wednesday. Despite expectations that the Fed will keep interest rates unchanged, markets are looking for any signals that may indicate a possibility of a cut in the coming months.

As for other precious metals, silver prices rose by 0.2% to $36.23 per ounce, while platinum recorded an increase of 0.6% reaching $1234.47. Palladium also rose by 0.9% to $1036.58 per ounce.