Gold Steadies Above $4,000 on Thursday as Fed Signals Potential 2026 Hikes

According to Kitco on Thursday (June 25), spot gold steadied above $4,000 per ounce at $4,012.80, up 0.36%, while spot silver rose to $58.13, up 1.44%. The rally follows a four-session selloff as bargain hunting emerged, though the U.S. dollar remains near a one-year high at 101.64 and Treasury yields hold near 4.4%. May PCE inflation data came in at 0.4% monthly and 4.1% annually, matching consensus expectations.

The market continues to digest the Federal Reserve's June 17 reset, where officials held rates at 3.50%–3.75% but shifted projections toward at least one potential rate hike before year-end, with nine Fed officials forecasting hikes in 2026. This policy pivot toward higher real-rate expectations has pressured gold. Additionally, tanker traffic through the Strait of Hormuz doubled within 24 hours to the highest level since late February, easing geopolitical premiums; Brent crude fell to $72.24 per barrel as vessels resumed full operations, reducing safe-haven demand for precious metals.