Gold Prices Stable Amid Geopolitical Developments and Cautious Fed Stance

Gold prices maintained their stability during trading on Thursday, June 19, as the US Federal Reserve adopted a cautious stance towards interest rate cuts, reducing gains for the yellow metal.

Gold was priced at $3374.51 per ounce in spot trading, while US futures contracts fell by 0.4% to $3391.70.

Tim Waterer, Chief Market Analyst at KCM Trade, explained that "Gold saw a modest recovery while anticipating the next steps in the Israeli-Iranian conflict," adding that "direct US intervention may increase geopolitical risks."

This coincided with escalating tensions after US President Donald Trump refrained from confirming his country's participation in any potential strikes against Iranian nuclear and missile facilities. Reuters reported, citing US officials, that Washington redeployed ships and aircraft away from bases in the Middle East in anticipation of Iranian attacks.

Gold is in high demand as a safe haven during geopolitical or financial disturbances. The Fed had kept interest rates unchanged on Wednesday, expecting to cut them by about half a percentage point this year, but hinted at the possibility of slowing the pace of future cuts.

In other precious metals markets, silver fell to $36.66, while platinum rose to $1342.36 and palladium to $1055.18.