WAM reported on Friday that gold was heading for a third weekly loss on a firm dollar, with prices falling as the U.S. dollar strengthened and the Federal Reserve signaled a hawkish policy outlook on June 19, 2026. Spot gold declined 0.6 percent to $4,184.33 per ounce by early trading hours, according to Reuters data that aligned with the WAM update. The metal has lost 0.9 percent for the week even after a U.S.-Iran ceasefire agreement eased some inflation concerns and placed a floor under prices.
A Reuters assessment found that the Fed’s latest projections, where nine officials foresee at least one quarter-point rate hike this year, have bolstered the dollar to a six-week high. This development increases the opportunity cost of holding non-yielding gold, the assessment noted. Trading Economics data places gold down about 8 percent over the past month, although it remains more than 20 percent higher than levels from a year earlier.
The World Gold Council reported net central bank gold purchases of 244 tonnes in the first quarter of 2026, marking a 3 percent rise from the prior year. Such buying has lent underlying support amid ongoing geopolitical uncertainties in the Middle East. However, the support has proven insufficient to offset pressures from elevated real yields, according to a Reuters analysis.
Nicky Shiels, head of metals strategy at MKS Pamp SA, said, “Super and unexpectedly hawkish FOMC dot plot makes this recent gold rally from $4,000 look more like a tactical dead cat bounce than a structural reversal.” Shiels added that the indication from half the committee on a possible 2026 rate hike was not anticipated by markets. Her comments followed the central bank’s June policy meeting.
U.S. gold futures moved in tandem with spot prices, registering comparable declines on the Comex exchange, market data showed. Silver headed for a weekly gain while palladium faced separate headwinds, according to Trading Economics figures. Brent crude oil futures posted modest increases despite the U.S.-Iran deal that allows immediate oil sales from Tehran.
The Federal Reserve’s emphasis on persistent inflation risks, even with moderating oil prices after the Iran agreement, has complicated rate cut forecasts, economists told Reuters. U.S. Treasury data placed the 10-year yield near multi-month highs, further weighing on bullion’s appeal. J.P. Morgan adjusted its average 2026 gold price forecast downward to $5,243 per ounce, citing reduced near-term investor demand.
Gold reached an all-time high of $5,608.35 per ounce in January 2026 before the recent pullback, Trading Economics records show. Market participants await further U.S. economic indicators that could clarify the Fed’s trajectory. Central bank demand is expected to remain a key supportive factor through the remainder of the year, according to the World Gold Council.
