Gold recovers after Fed-led sell-off, but hawkish outlook caps gains
Gold (XAU/USD) rebounds on Thursday as the US Dollar (USD) eases after climbing to a seven-week high as traders assess the Federal Reserve’s (Fed) latest monetary policy announcement.
Gold rebounded on Thursday after the US Dollar eased, following the Federal Reserve's (Fed) latest monetary policy announcement. The precious metal gained 1.60% for the day, trading at around $4,332. The Fed's interest rate hike, the first since 2023, was unanimously decided, raising the federal funds rate target range by 25 basis points to 3.75%-4.00%.
Policymakers stated that inflation remains elevated and a rate increase should contribute to a more timely return to the 2% target. The hawkish tone from Fed Chairman Kevin Warsh, predicting multiple rate hikes, tempered the rally. While a higher US Dollar usually puts pressure on Gold, the current economic backdrop kept the recovery of the precious metal in check.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
