Cut or Hike? Gold Holds Gains After Fed Minutes
Gold prices moved more cautiously on Wednesday (February 18th), paring some of their intraday gains after the market digested the mixed tone of the FOMC minutes. In the latest update, XAU/USD was around $4,980/oz, up approximately +2.1% from the previous close.
The FOMC minutes confirmed that the Fed is not moving in a "one-way" direction. Some camps are open to rate cuts if disinflation persists, but others believe rates could be held on hold for longer—and even the option of tightening could emerge if inflation proves stubbornly above target.
Comments from Fed officials add nuance: Michael Barr is leaning toward keeping rates on hold "for some time," while Austin Goolsbee said a cut is still possible if data confirms inflation is tapering toward the 2% target.
Amid these inconclusive signals, gold remains a hedge against the risks of policy missteps and macroeconomic uncertainty. However, its momentum could be tempered when risk sentiment improves in the stock market and some geopolitical trends move toward negotiations, reducing the urgency of safe-haven assets as they do during market panic.
Source: Newsmaker.id
