August gold futures fell sharply after the Fed signaled potential rate hikes to curb inflation despite a U.S.-Iran peace deal.
Gold August futures opened at $4,275.10 per troy ounce on June 18, 2026, down 2.4% from Wednesday’s close of $4,381.40. Prices later recovered slightly to $4,283.80 as of 6:58 a.m. ET, though sentiment remained subdued.
The decline follows the Federal Reserve’s latest meeting, where nearly half of FOMC members projected at least one interest rate hike this year to combat inflation. Gold had surged earlier in the week amid geopolitical tensions but failed to sustain gains despite a U.S.-Iran peace agreement signed overnight.
Year-over-year gold price growth slowed to 26.3%, the lowest in over a year, down from a peak of 95.6% in late January. U.S. stock futures rose on the peace deal, but gold’s muted reaction underscores concerns over tighter monetary policy.