US Stock Market Closed June 21 as Gold Falls on Fed Rate Hike Signals

The US stock market is closed on Saturday, June 21, 2026, as markets do not operate on weekends. On Friday, gold prices fell 0.9% to $4,169.44 per ounce, marking the third straight weekly loss. Federal Reserve Chair Kevin Warsh’s hawkish signals increased expectations for a 25-basis point rate hike by September, pressuring both precious metals and equities heading into the week.

Why Gold Is Under Pressure

Spot gold fell 0.9% to $4,169.44 per ounce by Friday afternoon, hitting its lowest level since June 11 at $4,119.78. The metal has traded below its 200-day moving average since June 5. US gold futures dropped 1.4% to $4,186.50. A firmer US dollar made greenback-priced metals less affordable for holders of other currencies, adding downward pressure on the precious metal.

Fed Rate Hike Expectations Rise

Nine of the Federal Reserve’s 19 policymakers now expect the central bank will need to raise its policy rate this year, according to projections published Wednesday. Traders currently see a 70% chance of a Fed hike by September, according to the CME FedWatch Tool. Fed Chair Kevin Warsh’s first policy meeting included hawkish comments that shifted market expectations away from near-term rate cuts. Higher interest rates increase the opportunity cost of holding non-yielding assets like gold.

What Analysts Say About Gold’s Path Forward

Nikos Tzabouras, senior market analyst at Jefferies-owned Tradu.com, warned that gold faces a distinct risk of dropping below $4,000 per ounce. He noted that higher-for-longer Fed expectations are toxic for non-yielding assets while benefiting the dollar. Gold’s trajectory will depend on developments in US-Iran negotiations, next week’s US inflation update, and how markets price the Fed going forward.

Market Context: Stocks and Geopolitics

Stocks fell sharply after Fed Chair Warsh’s first policy meeting, where his hawkish comments increased rate hike expectations. Despite easing tensions in the Middle East following renewed US-Iran diplomatic talks in Switzerland, the odds of a rate hike have risen over the past three months. This shift signals a potential tightening of monetary policy that could influence market movements in the coming months. Investors managing portfolios should understand how monetary policy affects asset valuations.

Final Thoughts

Gold’s three-week losing streak reflects the Fed’s hawkish turn under Chair Warsh, with rate hike odds now at 70% by September. Investors should watch next week’s inflation data and US-Iran talks, as both could shift the Fed’s path and gold’s direction.

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