Gold prices continue to fall: what’s behind the trend
25 June 16:15
Gold prices edged lower on Thursday, June 25, hovering near the more than seven-month low reached the previous day, as expectations of tighter monetary policy in the U.S. continue to weigh on the precious metal, "Komersant Ukrainian" reports, citing Reuters.
The spot price of gold fell 0.22% to $3,991.6 per troy ounce.
Watch us on YouTube: important topics – without censorship
Markets are currently pricing in a 66% probability of a U.S. Fed rate hike in September, according to the CME Group’s FedWatch tool.
“The Fed’s hawkish shift, which has led to a reassessment of market expectations regarding rate hikes, remains the main factor behind gold’s weakness,” said Nikos Tsabouras of Tradu.com.
Tsabouras also noted that outflows from ETFs and the flow of capital into stocks amid the artificial intelligence boom are certainly putting pressure on the precious metal, but these trends are cyclical in nature and do not undermine gold’s long-term investment appeal.
The precious metal fell by more than 6% following last week’s Fed meeting and, on Wednesday, dropped below the $4,000 level for the first time since November 2025. Compared to the record high of $5,594.82 reached on January 29, prices have fallen by 28%.
Investors are awaiting the release of the U.S. PCE index—a key inflation indicator for the Fed.
Meanwhile, Lebanon and Israel are reviewing a plan promoted by Washington that calls for the transfer of part of the Israeli-controlled territories—previously seized from Hezbollah—to the Lebanese army.
Palladium rose 1.97% to $1,189.33 per ounce, while silver gained 0.16% to $57.53 per ounce.
Meanwhile, the price of platinum remained stable at $1,577.09.
Read us on Telegram: important topics – without censorship
