Update: Gold Trading Lower After the Fed Leaves Rates Unchanged but Indicates Cuts are Coming

02:00 PM EDT, 06/19/2025 (MT Newswires) -- (Updates prices.)

Gold traded lower mid-afternoon on Thursday, a day after the Federal Reserve left U.S. interest rates unchanged but said cuts are likely coming this year.

Gold for August delivery was last seen down US$17.80 to US$3,390.30 per ounce. continuing to trade below the June 13 record high of US$3,452.80.

Still, safe-haven buying is offering support as the United States mulls joining Israel's attacks on Iran as it looks to disrupt that country's nuclear ambitions. A dovish outlook for U.S. interest rates after the Federal Reserve on Wednesday indicated its expects to cut rates two times this year and concerns over rising U.S. debt are also backing prices.

"Growing concerns around US fiscal sustainability, softening labour market data, and the threat of tariff-driven supply disruptions are reinforcing the case for hard assets. These conditions also strengthen the possibility of a more dovish shift from the Federal Reserve, potentially opening the door to rate cuts sooner and deeper than previously expected. In this environment, gold pushing toward the USD 4,000 mark over the next 12 months is no longer out of the question," Ole Hansen, head of commodity strategy at Saxo Bank, noted.

The dollar was steady early, with the ICE dollar index was last seen up 0.09 points to 98.99, well under the 52-week high of 110.18. Treasury markets are closed for the U.S. Juneteenth holiday.

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