SPDR Gold Shares is trading 2.1% down today after the Federal Reserve signaled a more hawkish interest rate outlook and geopolitical risks in the Middle East began to subside.
- The Fed maintained current interest rates but indicated that no cuts are expected for the remainder of 2026, with the next potential move being a hike. This shift has pushed Treasury yields higher, increasing the opportunity cost of holding non-yielding gold.
- Safe-haven demand is cooling as markets react to a preliminary U.S.–Iran peace agreement and reduced conflict risks in the Strait of Hormuz, which have also contributed to falling oil prices.
- The ETF is under additional pressure as spot gold retreats from recent highs and U.S. equity markets trade lower in response to the central bank's hawkish stance.