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Update: Gold Falls as the Dollar Climbs to the Highest in More Than a Year

BY MT Newswires | ECONOMIC | 01:56 PM EDT

01:56 PM EDT, 06/23/2026 (MT Newswires) -- (Updates prices in the second paragraph.)

Gold fell for a third session midafternoon on Tuesday as the dollar continued to climb after the Federal Reserve last week warned interest rates may rise as inflation continues to run ahead of its 2% target.

Gold for August delivery was last seen down US$52.90 to US$4,149.20 per ounce.

The price of the metal has dropped more than 5% since the Federal Reserve's policy committee on Wednesday ended its two-day meeting leaving interest rates unchanged but warned of a potential coming rate hike as inflation surges due to rising energy costs following the U.S.-Iran war, boosting the dollar.

"Traders and investors continue to adjust to the risk of higher funding costs amid the Fed's focus on inflation and price stability," Saxo Bank wrote.

The dollar rose to the highest since since March 2025, with the ICE dollar index last seen up 0.39 points to 101.41. Treasury yields weakened, with the U.S. two-year note last seen down 4.5 basis points to 4.194%, while the 10-year note was paying 4.49%, down 2.6 points.

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

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