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Gold Pulls Back as Fed Uncertainty and Strong Dollar Weigh

Traders are awaiting the June FOMC minutes due July 8 because the details could determine whether bullion resumes its rally or slips toward key support.

Overview

  • Spot gold has retreated to the low-$4,100s, trading around $4,123 per ounce, after peaking near $5,595 in January and falling roughly 7% year to date.
  • The Federal Reserve held its policy rate at 3.50–3.75% in the June 16–17 meeting, but the dot plot showed a 9‑9 split and Chair Kevin Warsh declined to give a personal projection, creating fresh uncertainty about the policy path.
  • A firmer U.S. dollar and higher real yields are the main near-term forces pushing gold lower because they raise the return on interest-bearing assets compared with non-yielding bullion.
  • Markets are focused on the June FOMC minutes scheduled for release July 8 for which traders expect clues about which side of the 9‑9 split gained traction and whether that will tighten or ease pressure on gold.
  • Structural supports such as central-bank purchases, swings in ETF holdings, and episodic geopolitical risk remain potential stabilizers and could trigger renewed buying if the Fed signals less chance of further rate hikes.