Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold edged up 0.1% to close near $3,390 as Treasury yields and the dollar dipped ahead of the Fed's decision on interest rates. But all three assets reversed direction after the central bank's forward guidance was slightly hawkish. Silver finished 0.6% higher at $36.87 an ounce.

The Federal Reserve left interest rates unchanged, as expected, and continued to forecast two quarter-point rate cuts in 2025, probably starting in September. But the decision was far from unanimous, with several members calling for no rate cuts at all, given inflation concerns about tariffs.

Fed Chair Jerome Powell said afterward that policy makers fully expect inflation to build over the summer as the cost of tariffs begins to filter into consumer goods and services.

Following the Fed's decision and statement, Treasury yields and the dollar ticked slightly higher while gold slipped into minor losses in after-hours trading.

Gold remains supported by safe-haven inflows driven by the escalating conflict between Iran and Israel. President Trump demanded "unconditional surrender" from Iran, which was promptly rejected by Ayatollah Ali Khomenei.

Platinum and palladium gained 4.9% and 0.8%, respectively.

At the New York close: gold added $3.20 to $3,398/80; silver slid 22 cents to $36.87; platinum rose $61.60 to $1,327.50; and palladium picked up $8.55 to $1,061.80 an ounce.