XAU/USD rises as the Federal Reserve maintains interest rates at 3.50%-3.75%, defying three dissenting votes for a hike.
Gold prices surged to near $4,095 in early Asian trading Thursday after the Federal Reserve left interest rates unchanged at its July meeting. The decision kept the Federal Funds Rate in a target range of 3.50% to 3.75%, despite three committee members voting for a 25-basis-point increase.
The Fed’s statement indicated tightening financial conditions have already eased inflation pressures, though policymakers signaled readiness to act if inflation reaccelerates. Market expectations had largely priced in the hold, but the dissenting votes added uncertainty about future moves.
Geopolitical tensions, including U.S.-Iran clashes, also supported gold’s appeal as a safe-haven asset, offsetting pressure from elevated rates and rising crude oil prices.