02:00 PM EDT, 06/20/2025 (MT Newswires) -- (Updates prices.)

Gold traded lower early on Friday as traders returned to work following the Juneteenth holiday to weigh the Federal Reserve's Wednesday decision to leave interest rates unchanged amid concerns tariffs imposed by President Donald Trump will raise inflation.

Gold for August delivery was last seen down US$22.40 from Wednesday's close to US$3,385.70 per ounce.

The Federal Open Market Committee forecast two potential cuts this year, even as Federal Reserve Chair Jerome Powell warned in a press conference that he expects inflation to rise in coming months as tariffs raise costs for U.S. businesses and consumers, clouding the rate-cut outlook.

"Traders booked profits after Wednesday's FOMC meeting signaled no clear path to the next rate cut, with the Fed's focus for now on the risk of higher tariff-related inflation. Gold has been looking tired for a while, raising the risk of a deeper correction, but without damaging an overall bullish setup," Saxo Bank noted.

The dollar was lower early, usually supportive for gold. The ICE dollar index was last seen down 0.28 points to 98.63. Treasury yields were mixed, with the yield on the U.S. two-year note last seen down 4.6 basis points 3.908%, while the 10-year note was paying 4.372%, down 2.4 basis points.