Gold Pulls Back After Fed

2026-06-17 18:51 By Andre Joaquim 1 min. read

Gold prices swung lower to $4,275 per ounce on Wednesday, halting a four session rally after the Federal Reserve held rates unchanged, as expected, and signaled the possibility of a rate hike this year.

Half of the FOMC projected that it may be necessary to raise interest rates this year, consistent with the expectations that core inflation will be higher than expected due to the impact of the war in the Middle East.

The Fed previously signaled it has leeway to prioritize price stability as the latest labor market data reflected a resilient labor market.

Precious metal prices fell as shorter term Treasury yields surged, raising the opportunity cost to allocate in bullion instead of interest-bearing securities.

Meanwhile, safe-haven demand was lower as both the US and Iran maintained their intention to sign an agreement to suspend hostilities and restore energy trade on Friday.

Major central banks in Europe maintained their rates unchanged, although BoJ raised rates as expected.



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