Gold, Silver Fall After Fed Holds Rates Steady But Signals Hawkish Stance

According to Kitco, spot gold and silver prices declined on Thursday (June 19) as markets digested a hawkish Federal Reserve hold. Spot gold traded near $4,244.60 per ounce, down 0.29%, while spot silver fell to $66.995, down 1.36% on the session.

The Fed maintained the federal funds rate target range at 3.50% to 3.75% on Wednesday, but signaled a hawkish stance with nine of 18 officials expecting a rate hike this year. Treasury yields rose sharply following the decision, with the 2-year yield reaching its highest level since February and the 10-year yield moving into the mid-4.4% area. The U.S. dollar strengthened as investors priced in less rate-cutting and more hike risk. Meanwhile, the U.S. and Iran signed an initial agreement to end their conflict and resume Iranian oil exports, which pressured gold prices as the immediate safe-haven demand faded.