Gold prices dip due to Fed's hawkish stance and Middle East tensions, impacting safe-haven appeal
From Investing.com: 2025-06-20 03:29:00
Gold prices remained steady on Thursday, approaching a one-week low as the Federal Reserve projected two interest rate hikes before the end of the year. The Fed’s latest projections indicated slower economic growth, higher inflation, and weaker employment in 2025, limiting the appeal of non-yielding assets like gold. Geopolitical turmoil in the Middle East led to a decline in gold prices as investors offloaded the precious metal amid escalating tensions.
The euro slightly strengthened on Thursday, supported by safe-haven demand amid escalating geopolitical tensions, including the conflict between Israel and Iran. The Federal Reserve’s data-driven stance and warnings of rising inflation due to tariffs added to the uncertainty. Investors are awaiting key economic data for clues on the US interest rate path, while closely monitoring potential US involvement in the Middle East conflict.
Bitcoin fell slightly on Thursday within a narrow trading range as speculation over potential US involvement in the Israel-Iran conflict kept investors cautious. The Federal Reserve’s hawkish stance and warnings of inflation due to proposed tariffs reduced the likelihood of aggressive monetary easing, affecting riskier assets like cryptocurrencies. Geopolitical uncertainty and cautious sentiment led to limited upside in the crypto market, with Bitcoin facing resistance amid heightened uncertainty.
Read more at Investing.com: Gold Dips as Middle East Tensions and Fed Caution Weigh on Sentiment