Close June 23 session, spot global gold price drop 80 USD to 4,110 USD ounce. Morning June 24, price touch 4,080 USD.
Market drop as US dollar hit one-year high on expectation US Federal Reserve (Fed) raise rate. Expectation outweigh oil price drop as US - Iran continue peace talk.
Global gold price now below 4,100 USD. Chart: Kitco
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Dollar Index - measure of greenback strength against basket of major currencies - now 101.3 points. Highest since May 2025. Stronger USD make gold expensive for non-US buyer.
"Right now, gold and silver not look to Middle East. They follow Fed comment last week," Bob Haberkorn - market strategist at StoneX explain.
Monetary tightening signal to curb inflation from new Fed Chair Kevin Warsh make investor raise rate hike bet. CME FedWatch Tool show investor now predict 86% chance of December rate hike, up from 61% before Fed meeting.
Though gold seen as inflation hedge, precious metal price tend to drop in high-rate environment, as it pay no interest.
Politically, US start 60-day Iran sanction waiver from June 22, though Lebanon tension remain high. Earlier, US Vice President JD Vance say talk with Iran official in Switzerland lay good foundation for final peace deal. Oil tanker traffic through Strait of Hormuz also rise.
In June 23 session, Brent crude price drop over 1%. Morning June 24, price lose another 0.5% to 76 USD barrel. Investor now wait for Personal Consumption Expenditures (PCE) Index - Fed favorite inflation gauge - for more monetary policy cue.
Besides gold, other precious metals like silver, platinum, palladium drop 1-5%. Decline continue this morning.