Markets trimmed expectations for further Fed tightening after Wednesday’s meeting, lifting gold above USD 4,100 per ounce.
Gold prices briefly surpassed USD 4,100 per troy ounce after the Federal Reserve’s latest meeting as investors scaled back bets on additional rate hikes. The move reflected shifting sentiment amid persistent inflation concerns, though Fed funds futures still signal potential tightening ahead.
Prior to the meeting, expectations for further rate increases had weighed on gold, which typically struggles in high-rate environments. Jewellery demand remains weak, while ETF inflows have slowed, according to World Gold Council data. Central bank purchases, though robust, are projected to fall short of 2023’s record levels.
Despite the rally, inflationary pressures and lingering rate hike expectations may limit further gains. Analysts note that demand trends for the second half of the year are unlikely to improve significantly.