Gold prices are falling: what’s behind the trend
24 June 16:15
Gold fell for the second consecutive session on Wednesday, June 24, dropping to a nearly two-week low under pressure from a strong dollar and expectations of a Fed interest rate hike, while investors are monitoring the progress of peace talks between the U.S. and Iran, "Komersant Ukrainian" reports, citing Reuters.
The spot price of gold fell 1.29% to $4,054.86 per troy ounce in the first half of the day, having earlier hit its lowest level since June 11.
“A strong dollar continues to weigh on gold, and sluggish investment demand, as indicated by ETF inflows, isn’t helping either,” said Giovanni Staunovo of UBS.
The U.S. dollar continued to strengthen on Wednesday, hitting a 13-month high, making the precious metal more expensive for buyers outside the U.S.
Markets are now pricing in three Fed rate hikes in 2026, although even before the regulator’s meeting last week, only one rate hike was expected, according to the CME Group’s FedWatch tool. Current price levels are likely to support buying by central banks, which remained stable in May, but the Fed’s inflation concerns are expected to limit investment demand and keep short-term risks skewed to the downside, Stounovo added.
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Investors are also awaiting Thursday’s release of U.S. personal consumption expenditures (PCE) data—a key inflation indicator for the Fed. Meanwhile, U.S. President Donald Trump said on Tuesday that Tehran had agreed to allow the IAEA to conduct regular inspections of its nuclear facilities on a long-term basis, though the Iranian side denies such an agreement, casting doubt on the stability of the deal with Washington.
Palladium fell 2.14% to $1,210.97 per ounce, while silver dropped 2.16% to $60.66 per ounce.
Meanwhile, the price of platinum fell by 1.84% to $1,621.46.
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