Gold Pressured by Dollar and Hawkish Fed Signals
Gold prices weakened on Thursday (June 17th) due to pressure from the Federal Reserve's hawkish signals and a strengthening US dollar. However, falling oil prices following the US-Iran ceasefire agreement helped prevent further declines by alleviating some inflation concerns.
Spot gold fell 0.2% to $4,249.16 per ounce, after hitting its lowest level since November 2025 last week. US gold futures fell 2.6% to $4,268.40.
The Fed held interest rates unchanged on Wednesday, but nine of 19 policymakers see the need for a rate hike by year-end. The market now rates an 88% chance of a US rate hike in December, up from 61% before the Fed's policy statement.
The US dollar strengthened after the decision and is at a one-year high. This makes dollar-priced gold more expensive for foreign buyers, while reducing the appeal of bullion amid expectations of high interest rates.
As a non-yielding asset, gold is typically pressured when interest rates and yields rise. However, the interim US-Iran deal provides a cushion for prices by suppressing oil prices and reducing the risk of a spike in energy-related inflation.
The US and Iran have released the text of the interim agreement signed to end the war, although President Donald Trump has continued to warn of the possibility of renewed attacks if Iran fails to fulfill its commitments. In other metals, silver fell 2% to $66.65 per ounce, platinum weakened 1% to $1,718.78, and palladium fell 0.9% to $1,300.03. (arl)
Source: Newsmaker.id
