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Gold Falls Post-Fed Hold; Dubai Unveils T+0 Contract

6/21/2026

23 2 Full Breakdown

Summary

Fed Holds Rates

Gold fell to $4,122.06 Friday, a London low since mid-November, after the Federal Reserve (Fed) left rates unchanged.
Fed kept its rate at 3.50%-3.75% in its meeting and dropped cut-hint language.
U.S. Dollar Index rose 0.3% to a 13-month high of 101.10, pressuring gold.
SPDR Gold Trust holdings rose to 1,020.49 metric tons, highest since June 4.
Dubai Multi Commodities Centre will launch the Gulf’s first spot gold T+0 contract Monday.

Summary

Goldman Sachs Cuts

Goldman Sachs cut its 2026 year-end gold target to $4,900 per ounce and now expects the final two Fed cuts in June and December 2027, not December 2026 and March 2027.
Analysts Lina Thomas and Daan Struyven said the downgrade reflects a hawkish Federal Reserve (Fed) outlook and weaker ETF inflow expectations.
A World Gold Council survey shows 45 % of central banks aim to boost reserves, with buying 50 tonnes monthly, above pre-2022 levels.

Summary

Switzerland cancels

Switzerland announced on Friday that the planned U.S.-Iran talks to end the Middle East conflict are cancelled.
The cancellation heightened geopolitical uncertainty and sparked a broader risk-off mood in global markets.
Analysts warned the stalled effort could keep investors wary, lowering demand for safe-haven assets.
Gold and silver fell to their lowest since June 11 as a stronger dollar and heightened risk pressured precious-metal prices.

History

Historical Context

After Paul Volcker was appointed Fed chair in 1979, the board lifted the federal-funds rate to a 17.6 % peak in April 1980, sparking a gold rally. A similar pattern re-emerged when the Fed, under its 2023-24 policy, kept rates at 3.50-3.75 % after a 0.25 % hike to 3.25 % in February 1994, pressuring gold lower and prompting central banks such as Switzerland to adjust reserves.

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Fed Holds Rates

Gold fell to $4,122.06 Friday, a London low since mid-November, after the Federal Reserve (Fed) left rates unchanged.
Fed kept its rate at 3.50%-3.75% in its meeting and dropped cut-hint language.
U.S. Dollar Index rose 0.3% to a 13-month high of 101.10, pressuring gold.
SPDR Gold Trust holdings rose to 1,020.49 metric tons, highest since June 4.
Dubai Multi Commodities Centre will launch the Gulf’s first spot gold T+0 contract Monday.

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