Gold declined after cautious Fed geopolitical tensions

19 Haziran 2025

Gold declined after cautious Fed, geopolitical tensions provide support

Today’s markets analysis on behalf of Frank Walbaum Market Analyst at Naga

 

Gold prices extended their decline on Thursday, falling to a one-week low, as the US Dollar strengthened following the Federal Reserve’s hawkish tone. The Fed held rates steady as expected, but the updated projections revealed a slower pace of monetary easing ahead, pressuring non-yielding assets like gold. In this regard, investors could continue to monitor new inflation and economic indicators and their potential impact on monetary policy, in addition to the effects of trade policy.

Despite the downside pressure, the market could continue to find support from geopolitical tensions in the Middle East. Investors’ attention remains focused on the potential for further escalation and the implications for regional stability. Comments from US President Trump on a possible intervention in the Middle East could leave markets on edge and fuel volatility. Additionally, tensions persisted in Eastern Europe, contributing to fuel safe-haven demand.