TD Securities cites FOMC policy and Iran oil risks delaying Fed rate cuts, pressuring gold prices.
Gold prices fell as the Federal Reserve adopted a higher-for-longer stance on interest rates, dimming prospects for near-term cuts. The shift follows the latest FOMC decision and geopolitical tensions, including Iran-related oil shocks, reinforcing a neutral to restrictive policy bias.
Markets had anticipated a more dovish pivot, but recent data and risks delayed expectations. Comparable periods of prolonged rates historically weigh on non-yielding assets like gold, reducing its appeal as an inflation hedge.
The immediate reaction saw gold futures dip, while Treasury yields edged higher, reflecting revised rate-cut timelines.