Gold Heads for 3rd Weekly Loss as Dollar Holds Near 1-Year High
Updated
Updated · CNBC · Jun 19
Gold Heads for 3rd Weekly Loss as Dollar Holds Near 1-Year High
3 articles · Updated · CNBC · Jun 19
Summary
$4,184.33 spot gold was down 0.6% on Friday and set for a 0.9% weekly drop, while August U.S. futures fell 1% to $4,202.10.
A one-year-high dollar and the Fed's hawkish turn under new Chair Kevin Warsh pressured bullion after policymakers left rates unchanged but signaled more tightening.
Nine of 19 Fed officials now expect a rate hike this year, and traders lifted the implied chance of a December increase to 87% from 61% before the decision.
Gold's geopolitical support faded as the U.S.-Iran peace deal held, oil tankers resumed transits through the Strait of Hormuz and Washington lifted its blockade on Iran.
Goldman Sachs still sees gold reaching $4,900 by December, but cut that forecast from $5,400 after dropping expectations for any Fed rate cut this year.