Gold Steady as Fed Stands Pat
Gold held around $2,760 per ounce on Thursday, following a slight decline in the previous session, as investors reassessed the Fed's policy outlook after its widely expected decision to hold rates steady.
Policymakers signaled a hawkish stance, reiterating that inflation remains elevated and removing the reference to progress toward the 2% target, while also recognizing strong growth and labor conditions.
This dampens the appeal of the metal, as higher rates raise the opportunity cost of non-yielding gold. On the other hand, dovish actions from other central banks supported bullion.
The BoC ended its quantitative tightening and, along with the Swedish Riksbank, cut rates. The ECB is also expected to lower rates this week, while both the RBI and PBoC signaled rate cuts.
Meanwhile, demand for safety eased somewhat as mixed signals from US government officials reduced concerns about widespread tariffs under the Trump administration.
Source: Trading Economics
