Content and data provided by various third parties and Fidelity - Terms of Use
Print.Print
Small font size A Larger text size A Largest text size A

Update: Gold Falls, Dollar Rises as Half of Fed Members Expect a Rate Increase in 2026

BY MT Newswires | ECONOMIC | 06/18/26 02:30 PM EDT

02:30 PM EDT, 06/18/2026 (MT Newswires) -- (Updates price move in second paragraph.)

Gold was lower in late-day trading Thursday as the dollar rose to its highest level in more than a year after the US Federal Reserve left interest rates unchanged at the conclusion of its two-day policy meeting on Wednesday.

Gold, which has an inverse relationship with the greenback, was down US$135.90 to US$4,245.70 per ounce. The dollar was up 0.5% Thursday, heading for its highest close since May 2025.

The Federal Open Market Committee on Wednesday left U.S. benchmark interest rates unchanged. Half of the committee members still expect rates to rise this year as inflation remains well above the 2% target rate.

"Gold tumbled ... after a surprisingly hawkish FOMC meeting signalled the potential for another rate hike later this year," Saxo Bank wrote.

Treasury yields fell, with the US two-year note last seen paying 4.162%, down 3.3 basis points, while the yield on the 10-year note was down 5.9 points to 4.441%.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

More Fixed Income News

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

© 1998 – 2014 FMR LLC.

All rights reserved.
fir_news_article