Gold cuts losses as Fed pauses and stays silent on future hikes
Bullion wavers around US$4,050 an ounce as Treasury yields and the US dollar fluctuate
Gold prices recovered after the U.S. Federal Reserve decided to keep interest rates at 3.75-4 percent, signaling no immediate hikes. The committee's 10-2 vote left rates unchanged, with dissenters preferring a quarter-point increase. Fed officials emphasized their commitment to curb inflation, while not providing a clear timeline for future rate changes.
Analysts noted that the Fed's decision was less hawkish than anticipated, suggesting gold could stay near its recent low of US$3,900. Elevated bond yields and energy-intensive inflation pose challenges for gold's price recovery. The Fed's reduced meeting frequency in 2027 further adds to the uncertainty. Despite these factors, gold has declined 2.1 percent in October, indicating its vulnerability to broader market volatility.
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