Gold prices slip for Fed rate signals, dollar strength

June 19, 2026 (MLN): Gold prices declined on Friday, as a firming U.S. dollar and hawkish signals from the Federal Reserve continued to pressure the non-yielding metal.

Currently, spot gold is down 2.19% to $4,137.66 an ounce as of [11:01 am] PST, according to data reported by Mettis Global.

The dollar held near a one-year high, raising the cost of greenback-denominated bullion for holders of other currencies, while nine of the Fed's 19 policymakers projected at least one rate hike this year, CNBC reported.

The projections came after the central bank held its policy rate steady at the first meeting chaired by Kevin Warsh.

Traders subsequently priced in an 87% probability of a December rate increase, up sharply from 61% before the Fed's announcement, according to the CME FedWatch Tool.

Gold typically loses appeal in a rising rate environment given its non-interest-bearing nature. Inflationary pressures linked to the Iran conflict have further reinforced rate-tightening expectations among global central banks.

On the geopolitical front, oil tankers resumed passage through the Strait of Hormuz after the U.S. lifted its blockade on Iran.

Markets in mainland China and Hong Kong remained shut for the Dragon Boat Festival holiday.

Among other precious metals, silver dropped 1.5% to $64.83 per ounce, platinum declined 1.3% to $1,674.47, and palladium slipped 0.8% to $1,268.65.

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