WS Investor
26 Jun 2026, 09:13
Gold traded little changed near $4,050 an ounce on Friday as investors balanced easing geopolitical tensions against persistent U.S. inflation and expectations that the Federal Reserve will keep monetary policy restrictive.
The precious metal stabilized after a sharp selloff earlier in the week, when a ceasefire in the Middle East reduced demand for safe-haven assets. While geopolitical risks have eased, gold has found support as bargain hunters emerged following its recent decline.
However, gains remained limited after the latest U.S. inflation data showed Core PCE rising 3.4% year-over-year and headline PCE accelerating to 4.1%, reinforcing the view that inflation remains well above the Federal Reserve's target. The data has strengthened expectations that policymakers will maintain a hawkish stance, supporting the U.S. dollar and weighing on non-yielding assets such as gold.
Investors are now watching upcoming Fed commentary and economic data for further clues on the path of interest rates, with persistent inflation continuing to limit gold's upside despite calmer geopolitical conditions.
The precious metal stabilized after a sharp selloff earlier in the week, when a ceasefire in the Middle East reduced demand for safe-haven assets. While geopolitical risks have eased, gold has found support as bargain hunters emerged following its recent decline.
However, gains remained limited after the latest U.S. inflation data showed Core PCE rising 3.4% year-over-year and headline PCE accelerating to 4.1%, reinforcing the view that inflation remains well above the Federal Reserve's target. The data has strengthened expectations that policymakers will maintain a hawkish stance, supporting the U.S. dollar and weighing on non-yielding assets such as gold.
Investors are now watching upcoming Fed commentary and economic data for further clues on the path of interest rates, with persistent inflation continuing to limit gold's upside despite calmer geopolitical conditions.