Gold steadied near $4,000 an ounce on June 25, 2026, as new US inflation data reduced expectations for an interest-rate hike. This stabilization capped a volatile week for bullion, which had previously dropped to its lowest point since November. Spot gold showed little change in early trading, having regained 0.7% in the prior session.
The dip in Treasury yields on Thursday followed the release of the US personal consumption expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge. The PCE rose by a less-than-expected 0.4% in May, leading to a recalibration of market expectations regarding future monetary policy.
Bond traders are now pricing in slightly reduced probabilities for a rate hike this year, and the chance of an interest rate increase next month has dwindled to approximately one in three. A stronger US dollar, which had gained 1.8% since the last Fed meeting where policymakers indicated support for higher borrowing costs, saw its winning streak snapped on Thursday. High borrowing costs traditionally act as a headwind for non-yielding precious metals like gold.
