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PRECIOUS-Gold firms on Middle East tensions; all eyes on Fed meeting
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PRECIOUS-Gold firms on Middle East tensions; all eyes on Fed meeting
Jun 17, 2025 7:52 AM

*

US retail sales fall sharply in May

*

Fed rate decision due on Wednesday

*

Trump says he wants 'real end' to nuclear problem with

Iran

(Updates U.S. early-session trading)

By Sarah Qureshi

June 17 (Reuters) - Gold prices rose on Tuesday as

geopolitical tensions escalated in the Middle East, with focus

also turning to the U.S. central bank's policy decision on

Wednesday, while silver surged to a 13-year high.

Spot gold was up 0.2% at $3,390.73 an ounce as of

10:00 am EDT (1400 GMT), while U.S. gold futures fell

0.2% to $3,410.40.

"Geopolitical uncertainty, with the Israeli-Iran war that

will probably escalate before it de-escalates, is going to keep

a floor under the market for safe-haven bidding," said Jim

Wycoff, senior analyst at Kitco Metals.

Israel's military said Iran's military leadership is "on the

run" and that it had killed Iran's wartime chief of staff Ali

Shadmani overnight four days into his job, after he replaced

another top commander killed in the strikes.

U.S. President Donald Trump said that he wanted a "real end"

to the nuclear dispute with Iran and indicated he may send

senior American officials to meet with the Islamic Republic as

the Israel-Iran air war raged for a fifth day.

Elsewhere, the Federal Reserve will announce its policy

decision on Wednesday, followed by Chair Jerome Powell's press

conference.

The U.S. central bank is widely anticipated to leave its

benchmark overnight interest rate in the 4.25%-4.50% range,

where it has been since December.

A low interest rate environment and geopolitical uncertainty

tend to boost gold's appeal.

Central banks around the world expect their gold holdings as

a proportion of their reserves to increase over the next five

years, a survey by the World Gold Council showed.

Data showed that U.S. retail sales dropped more than

expected in May, but consumer spending remained supported by

solid wage growth.

Spot silver gained 2.1% to $37.1 per ounce, reaching

its highest level since February 2012.

"The next objective for the silver bulls is $40, and I think

that's achievable in the coming weeks or sooner," Wycoff added.

Platinum added 0.4% to $1,251.81 and palladium

rose 1.7% to $1,047.23.

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