Gold Steady as markets eye Fed guidance

17 June 2025

Gold Steady as markets eye Fed guidance and geopolitical risk persists

Market comments on behalf of Wael Makarem Financial Markets Strategists Lead at Exness

Gold prices held steady on Tuesday, consolidating after Monday’s decline, as investors weighed geopolitical developments against monetary policy expectations. The yellow metal could remain supported by ongoing tensions in the Middle East and continued investor inflows into gold-backed ETFs, which saw a net addition of 21.7 tonnes in the week ending June 13, the highest weekly inflow since early April and the fourth consecutive week of positive flows.

Geopolitical risks remain elevated. In the Middle East, Israel intensified its strikes on Iranian infrastructure. Meanwhile, in Eastern Europe, the ongoing conflict between Russia and Ukraine continues to weigh on investor sentiment, supporting demand for safe-haven assets such as bullion.

Attention now turns to the US Federal Reserve’s policy decision on Wednesday. While the Fed is widely expected to keep rates unchanged, markets are focused on the projections and press conference for any signals regarding the timing and scope of potential rate cuts later this year. Dovish remarks could increase the appeal of non-yielding assets, while a more cautious tone could lift US Treasury yields and weigh on gold prices. Investors also await key US macro data, including retail sales and industrial production, for further insight into the strength of the economy.

 

Zaid Barem / ymm