Gold Prices Set for 0.8% Weekly Drop
On 19 June 2026, spot gold prices extended losses in Asian trading, falling 0.7% to $4,181.86 per ounce by 22:12 ET (02:12 GMT). U.S. August gold futures slipped 1.1% to $4,199.10. The metal was on track for a 0.8% weekly decline, marking the third consecutive week of losses.
The weakness was attributed primarily to a stronger U.S. dollar and a hawkish outlook from the Federal Reserve, which outweighed the optimism generated by the interim peace agreement between Washington and Tehran. Nine of the Fed’s 19 policymakers indicated they expect at least one rate increase later in the year, reinforcing expectations that borrowing costs could stay elevated for an extended period.
Although the Fed left its policy rate unchanged at its most recent meeting, comments from Chair Kevin Warsh were interpreted by markets as decidedly hawkish, prompting Treasury yields to rise and the U.S. dollar to reach its strongest level in more than a year. The U.S. Dollar Index remained largely unchanged during Asian hours after a 0.7% surge on Thursday, hitting its highest level since May 2025.
A firmer greenback makes dollar‑denominated bullion more expensive for overseas buyers, while higher interest rates increase the opportunity cost of holding non‑yielding assets such as gold. Futures markets have priced in more than an 80% chance of a year‑end rate hike.
The interim peace deal, formally signed between the United States and Iran, was initially expected to facilitate the reopening of shipping through the Strait of Hormuz and triggered a steep decline in oil prices, easing concerns about energy‑driven inflation. Nevertheless, investors focused on the Fed’s renewed willingness to tighten policy further if price pressures persist, limiting the positive impact of the diplomatic development on precious metals.
Among other precious metals, silver fell 1.6% to $64.70 per ounce and platinum slipped 1.3% to $1,677.51 per ounce. Additional market indicators showed the DJIA up 0.09%, gold futures down 1.38%, crude oil down 0.25%, platinum spot down 1.63%, and the 10‑year Treasury yield up 0.79%.