Gold falls below $4,000 on Fed rate hike bets under Kevin Warsh
Key takeaways
- By early European trading, New York gold futures had slipped 0.2% to $3,999.70 an ounce, with spot gold deeper in the red at $3,999.08 — a decline of 2.7% that put it at its weakest level since last November.
- The dollar's strength has been a central driver of the selloff.
- The move follows the Fed's decision last week to hold its benchmark rate steady in a target range of 3.5% to 3.75%, while signaling that its next move could be a hike.
Gold falls below $4,000 on Fed rate hike bets under Kevin Warsh Gold falls below $4,000 on Fed rate hike bets under Kevin Warsh · Quartz · Andrew Harnik / Getty Images Cris Tolomia Thu, June 25, 2026 at 7:17 PM GMT+7 2 min read GC=F DX-Y.NYB SI=F PL=F PA=F Gold has fallen below $4,000 an ounce as markets raised their expectations for Federal Reserve interest-rate increases following last week's policy meeting, with the U.S. dollar climbing to its highest point in roughly a year.
By early European trading, New York gold futures had slipped 0.2% to $3,999.70 an ounce, with spot gold deeper in the red at $3,999.08 — a decline of 2.7% that put it at its weakest level since last November. An earlier session recorded a low of $4,090.27 — the cheapest gold had traded since June 11 — before spot prices settled at $4,121.09, down 1.7%. Since the conclusion of last week's Fed meeting, the metal has shed more than 3% of its value. Silver, platinum, and palladium also declined.
The dollar's strength has been a central driver of the selloff. Ricardo Evangelista, an analyst at ActivTrades, said that a firmer dollar, emboldened by the Fed's pivot toward tightening, was acting as a drag on bullion. CME FedWatch Tool data cited by CNBC showed markets pricing in roughly a 69% likelihood of a rate increase at the September meeting, more than double the 29% odds assigned just a week earlier.