Oil Prices Slide as U.S.-Iran Deal and Hormuz Reopening Ease Supply Concerns 
Asian Stocks Advance as Nikkei Nears Record High Ahead of Fed Decision 
Trump and Iran Sign Framework Peace Deal in France Amid Ongoing Middle East Tensions 
Asian Currencies Stabilize as Dollar Holds Near Two-Month High After Fed Hawkish Signal 
German Auto Suppliers Turn Bearish as Investment and Jobs Shift Overseas 
German Industry Employment Falls to Lowest Level in a Decade 
Japan Inflation Stays Below BOJ Target Despite Rate Hike and Rising Energy Cost Risks 
US-Iran Ceasefire Deal Extends Peace Talks and Eases Oil Trade Restrictions 
Asian Currencies Steady as Dollar Holds Firm Ahead of Fed Decision and US-Iran Deal Details 
BOJ Signals More Rate Hikes as Inflation Risks Rise Amid Energy Price Pressures 
ASX Proposes New Share Dilution Limits for Public Takeovers 
Gold Prices Rebound on U.S.-Iran Peace Deal Optimism Despite Fed Rate Hike Signals 
Gold Holds Gains as Oil Prices Retreat and Fed Decision Looms 
Trump Questions USMCA Renewal as Trade Talks Continue 
US Stock Futures Edge Higher Ahead of Key Federal Reserve Decision 
Dollar Hits One-Month High as Hawkish Fed Outlook Boosts Greenback 
Gold prices fell sharply on Thursday as a stronger U.S. dollar and a more hawkish Federal Reserve outlook pressured the precious metal market, overshadowing optimism surrounding a newly signed peace agreement between the United States and Iran.
Spot gold declined 1.1% to $4,209.15 per ounce, while gold futures dropped 3.5% to settle at $4,227.75 per ounce. The decline came as investors reassessed the outlook for U.S. interest rates following the latest Federal Open Market Committee (FOMC) meeting.
The Fed unanimously voted to keep the federal funds rate unchanged at 3.50% to 3.75%, a decision that was widely anticipated by financial markets. However, the central bank’s updated Summary of Economic Projections revealed a notably hawkish stance. Policymakers now expect the federal funds rate to reach 3.8% by the end of 2026, compared with the previous forecast of 3.4%.
The revised dot plot indicated that nine of the 18 FOMC participants expect at least one rate hike this year. The overall projection shifted from expectations of multiple rate cuts to a single 25-basis-point increase. Higher interest rates typically reduce the appeal of non-yielding assets such as gold, contributing to the decline in bullion prices.
Market attention also focused on the first policy meeting led by new Federal Reserve Chair Kevin Warsh. During his post-meeting remarks, Warsh announced several task forces aimed at reviewing the Fed’s communication strategy, balance sheet policies, data usage, productivity trends linked to artificial intelligence, and the central bank’s inflation framework.
Meanwhile, geopolitical developments provided some support to risk sentiment. U.S. President Donald Trump and Iranian President Masoud Pezeshkian signed an interim memorandum of understanding aimed at ending military operations and launching a 60-day negotiation period. The agreement also includes the reopening of the Strait of Hormuz without tolls or restrictions during the negotiation window and reaffirms Iran’s commitment not to develop nuclear weapons.
Despite the positive geopolitical news, gold prices remained under pressure as investors prioritized the implications of higher U.S. interest rates and a stronger dollar.
