Gold Slips as Fed Talks and Middle East Tensions Stir Markets 6-19-2025
Gold prices had a wild ride this week. Last week, gold jumped 3.5% due to growing fears of war between Israel and Iran. But this week, attention shifted to the Federal Reserve and its interest rate decision.
On Monday, gold started strong, hitting an eight-week high at $3,422. But as Iran signaled a willingness to negotiate, stocks rose, and gold slipped 1%. Silver stayed steady at $36.37.
By Tuesday, tensions rose again. President Trump demanded Iran’s “unconditional surrender,” spooking the markets. Stocks dipped, the dollar climbed, and gold struggled to move. It held near $3,390, while silver rose 2% to break above $37.
On Wednesday, the Fed kept interest rates unchanged but sounded cautious about inflation. Gold dropped 0.5% to $3,369 as investors braced for slower rate cuts. Stocks reacted in mixed fashion.
Markets were closed Thursday for Juneteenth. Even so, news of an Iranian missile hitting an Israeli hospital sent gold higher temporarily. But worries about the Fed’s position pushed it down again to $3,353. Silver also fell to $35.79, down 2.6%.
Friday brought more drama. Trump said he’ll decide within two weeks whether to strike Iran. At the same time, tech stocks weakened after rumors the U.S. might block chip exports to China. Stocks mostly fell.
As the weekends, gold is holding at $3,367, down 1.6%. Silver is at $35.92, off 1.2%. The Nasdaq is up slightly for the week, while the S&P 500 and Dow are both set to close lower. Investors remain cautious as they watch for what happens next with Iran, interest rates, and trade policy.
