PRECIOUS-Gold poised for worst week in a month as US rate cut expectations ease
By Anushree Mukherjee
June 20 (Reuters) - Gold prices fell on Friday and were poised for their worst weekly performance in more than a month after the Federal Reserve tempered expectations for rate cuts and on a temporary easing of concerns about an imminent U.S. attack on Iran.
Spot gold XAU= slipped 0.7% to $3,347.80 an ounce, as of 1201 GMT, and was down 2.5% for the week so far. U.S. gold futures GCcv1 shed 1.3% to $3,364.00.
The dollar was up 0.5% so far this week and poised for its biggest weekly gain in over a month, making gold more expensive for holders of other currencies.USD/
President Donald Trump will decide in the next two weeks whether the U.S. will get involved in the Israel-Iran air war, the White House said on Thursday. Israel and Iran's conflict entered a second week on Friday.
Trump's two-week deadline "indicates that things could have a little bit more hope to cool down before the U.S. involvement in that military strike. And I think that's easing some of the anxiety in markets, allowing gold prices to deflate a little", said Nitesh Shah, commodities strategist at WisdomTree.MKTS/GLOB
Gold, a safe-haven asset during times of political and economic uncertainty, also tends to thrive in a low interest rate environment.
On Wednesday, the Federal Reserve held interest rates in the central bank's current 4.25%-4.50% range, but slowed its overall outlook for rate cuts in response to a more challenging economic outlook.
Trump reiterated his calls for the Fed to cut interest rates, saying on Thursday the rates should be 2.5 percentage points lower.
"Gold, silver, and platinum all suffered setbacks as traders booked profits after Wednesday's FOMC meeting," said Ole Hansen, head of commodity strategy at Saxo Bank.
"Gold is likely to extend its current consolidation phase with support around $3,320 followed by $3,245."
Elsewhere, spot silver XAG= slipped 1.1% to $35.99 per ounce, while palladium XPD= lost 0.2% to $1,048.33. Platinum XPT= fell 1.7% to $1,285.58, after hitting its highest level in over 10 years in the previous session.
Spot gold price in USD per oz
Related Articles
【Hotspot Analysis】U.S. Bank Capital Deregulation: Opportunity for Banks or New Risks?
As the likelihood of the proposal’s implementation increases, it could have multiple implications for large banks.
Why You Should Watch the Bank of Japan’s Rate Hikes? Has the Yen Lost Its Safe-Haven Status?
TradingKey - In global capital markets, the Bank of Japan's policy moves and yen exchange rate trends are often key indicators for investment decisions. In many cases, BOJ actions can influence global stock, bond, and currency markets, such as when a BOJ rate hike triggers international capital flow
BOJ June Meeting Preview: 2025 Rate Hikes Off the Table; Slowdown in Bond Purchase Cuts?
TradingKey - On Tuesday, June 17, 2025, the Bank of Japan (BOJ) will hold its monetary policy meeting. The market widely expects that the policy interest rate will remain unchanged at 0.5%. The key focus ahead of the meeting is likely to be how quickly the BOJ will reduce its pace of scaling back...
[IN-DEPTH ANALYSIS] Australia: Under the Influence of Domestic and International Factors, AUD/USD Remains Bullish in the Short Term
Following the AUD/USD exchange rate increase in April and May this year, we believe there remains upside potential for the currency pair in the short term (0-3 months).
