Federal Reserve Minutes Show 9 Officials Expect Rate Hike This Year; Geopolitical Tensions Weigh on Gold

According to Federal Reserve minutes from its June meeting chaired by new Chair Jerome Powell, nine of 19 officials now expect at least one rate hike this year, with six predicting two increases. The majority emphasized that "upside risks to price stability remain elevated" and favored removing dovish language from prior statements. Officials cited AI investment, high commodity prices linked to Middle East tensions, and tariffs as key inflation risks.

Meanwhile, escalating geopolitical tensions have added pressure on precious metals. Trump threatened Iran over recent tensions and reimposed naval blockade measures, raising risks for Strait of Hormuz shipping. Gold is trading within a volatile range under dual pressure from hawkish Fed signals and Middle East conflict concerns.