Gold Prices Slip as Dollar Firmly Rises After Fed Dot‑Plot Shift
At 14:26 ET (18:26 GMT) on 17 June 2026, spot gold was down 0.9 % to $4,292.67 per ounce, while gold futures fell 1 % to $4,311.70 per ounce. The decline followed a sharp appreciation of the U.S. dollar after the Federal Reserve released an updated Summary of Economic Projections (dot plot) that signaled a more hawkish stance.
The Federal Open Market Committee, meeting under its new chair Kevin Warsh, left the target federal‑funds rate unchanged at 3.50 %–3.75 %. However, the dot plot now projects the rate at 3.8 % by the end of 2026, up from the 3.4 % forecast in the March projection, implying at least one 25‑basis‑point rate hike during 2026.
Earlier in the session, gold had been supported by optimism surrounding a U.S.–Iran accord that aims to end hostilities in the Middle East. The agreement reportedly allows Iran to resume oil exports and extends a cease‑fire while negotiations continue. The accord helped push crude oil prices sharply lower, easing concerns of an energy‑induced inflation shock and reducing market expectations for tighter monetary policy—factors that had previously been positive for non‑yielding assets like bullion.
In addition, gold had benefited from a recent decline in the U.S. dollar, which makes the metal cheaper for overseas buyers. The rapid firming of the dollar after the Fed’s hawkish dot‑plot reversal reversed that advantage, adding further pressure on gold prices.
The article was authored by Anuron Mitra with contributions from Ayushman Ojha and Scott Kanowsky.