Gold Moves Steady in European Session
Gold futures prices moved flat around $3,351.40 per troy ounce on Thursday (July 31st), as the market was still digesting the Federal Reserve's decision to hold interest rates unchanged. According to analysts from Sucden Financial, gold prices tended to stagnate after declining in the previous session, following the Fed's statement citing inflation risks due to tariff uncertainty as the primary reason for maintaining interest rates.
The Fed's decision to keep interest rates unchanged reflects a cautious stance in the face of stressful global conditions, particularly on the trade front. However, high interest rates over a longer period typically negatively impact precious metals like gold, which do not provide a yield (non-interest bearing).
Furthermore, the significant strengthening of the US dollar over the past week has added pressure on gold prices. A stronger dollar makes gold more expensive for international buyers, as gold is traded in dollar denominations. This reduces gold's appeal as a safe-haven asset, especially in uncertain market conditions.
Analysts believe that as long as the dollar remains strong and the Fed hasn't signaled any monetary policy easing, gold price movements will likely remain limited. Investors are now awaiting inflation data and subsequent policy direction to gain a clearer picture of the medium-term gold price outlook.
Source: Newsmaker.id
