Gold Extends Losses as Fed Rate-Hike Outlook Supports Dollar

09:33 AM EDT, 06/19/2026 (MT Newswires) -- Gold prices fell early Friday for a second straight session, even as the dollar retreated from a 13-month high reached after the Federal Reserve indicated it may raise interest rates to curb rising inflation.

Gold for July delivery was last seen down 1.8% to US$4,168.90 per ounce.

The Federal Open Market Committee on Wednesday left U.S. benchmark interest rates unchanged but warned of a future hike. Half of the committee members said they expect rates to rise this year as inflation remains well above the Fed's 2% target rate due to high oil prices. The threat of higher interest rates is supporting the dollar, a bearish indicator for commodities priced in the currency.

"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. While the market initially welcomed the US-Iran MOU and the prospect of lower energy prices, attention has shifted back to the Fed and the possibility of another rate hike later this year," Saxo Bank wrote.

The dollar moved down from the highest since May 2025, with the ICE dollar index last seen down 0.13 points to 100.72. Treasury yields fell, with the two-year note last seen paying 4.187%, down 0.8 basis points. The yield on the 10-year note was down 4.0 points to 4.46%

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