Gold slides toward $4,100 as hawkish Fed lifts dollar

Gold fell toward $4,100 per ounce on Tuesday as the U.S. Dollar Index held near a one-year high above 101, pressuring metals.150currency
The selloff follows the June 16–17 Fed meeting under Chair Kevin Warsh, where nine of 19 officials projected a rate hike this year, per Reuters.reuters
Traders now see an 87% chance of a December rate hike, according to CNBC, up from 61% before the meeting.cnbc

Gold and Silver Slide as Dollar Strengthens on Fed Rate Hike Expectations

Gold prices extended their decline on Tuesday, falling toward $4,100 per ounce as a firmer U.S. dollar and growing expectations of a Federal Reserve interest rate increase continued to weigh on precious metals in the aftermath of last week’s hawkish Fed meeting.

Metals Under Pressure

Spot gold traded near $4,106 on June 23, continuing a selloff that has now stretched into its third consecutive week of losses. Silver led the declines among precious metals, with prices falling sharply toward $63 per ounce after dropping nearly 4.7% the previous week. The rout comes as the U.S. Dollar Index held near 101, close to its highest level in over a year, according to The Wall Street Journal.150currency

The greenback drew fresh support on Tuesday as traders positioned for a hawkish Fed, with CNBC reporting the dollar index was “slightly up at 101.01, close to its one-year high of 101.13 reached late last week”.cnbc

Fed’s Hawkish Turn Under Warsh

The selloff traces directly to the June 16-17 Federal Open Market Committee meeting — the first chaired by Kevin Warsh. While the Fed held rates steady in the 3.50%-3.75% range for a fourth consecutive meeting, updated projections revealed that nine of 19 policymakers now expect a rate increase before year-end. The median projection for the federal funds rate rose to 3.8% by end-2026, up from 3.4% in March.cnbc

Reuters reported that Warsh declined to submit his own dot-plot forecast, instead using the meeting to launch sweeping reviews of Fed communication and policy frameworks. The hawkish shift sent Treasury yields higher, with the 2-year yield surging to about 4.19%.reuters

Market Pricing Tilts Toward December Hike

Futures markets have repriced rapidly. According to CNBC, traders are now forecasting an 87% likelihood of a rate hike in December, up sharply from 61% before the Fed announcement, based on the CME FedWatch Tool. Some investors see the possibility of a move as early as October.cnbc

The precious metals decline also reflects easing geopolitical tensions following a U.S.-Iran ceasefire agreement, which has reduced safe-haven demand for gold. Kitco noted that “positioning in metals remains defensive” as the market trades through “yields and the dollar rather than through recession hedging”.kitco

Gold is now roughly 23% below its January record high of $5,303 and has turned negative for 2026.goldtrack