Gold prices fell 1.71% alongside risk assets after the Fed’s hawkish stance lifted 2-year Treasury yields and the USD.
Gold prices declined 1.71% as higher 2-year Treasury yields and a stronger dollar weighed on the metal. The move followed the FOMC’s hawkish repricing, which pressured risk assets broadly, including Bitcoin, which dropped 2.15%. The dollar gained 0.55% against G10 currencies.
Prior to the sell-off, gold had traded near $2,340 per ounce but failed to recover fully despite a brief relief rally from a US-Iran agreement. The latest data showed gold modestly lower, reflecting persistent pressure from the Fed’s policy outlook.
Market reaction saw gold futures settle at $2,323, down 0.34% in recent trading, as investors digested the shift in rate expectations and dollar strength.