Gold Falls Over 1% as Fed Signals Potential Rate Hike

Gold dropped more than 1% on June 17, 2026, after the Federal Reserve held its benchmark rate steady but signaled a potential hike. The shift from rate-cut expectations — which had propelled gold past $5,100 per ounce in February 2026 — to hike signaling tightened real rates, pressing the non-yielding metal lower. CME Group analysis confirms gold's inverse relationship with rate expectations persists.