Gold Steadies After Six-Day Slide as the Fed Warns on Inflation Risks
Gold held steady after tumbling nearly 4% in the previous session, as the Federal Reserve warned that the Middle East war and surging energy prices could reignite inflation pressures. Bullion hovered around $4,835 an ounce in early trading, following a sixth consecutive daily decline — its longest losing streak since late 2024.
The Fed kept interest rates unchanged at its meeting on Wednesday and continued to project one rate cut this year, but Chair Jerome Powell stressed that any reduction would require clear progress on slowing inflation. In its statement, the central bank said the implications of developments in the Middle East for the U.S. economy remain “uncertain.”
Oil moved higher after Iran and Israel exchanged strikes on key energy facilities in the Persian Gulf region. Nearly three weeks into the war, the surge in energy prices is lifting inflation risks and making rate cuts by the Fed and other central banks less likely — a headwind for non-yielding gold.
Despite the recent pullback, bullion is still up roughly 12% so far this year. However, upside momentum has faded in recent weeks as expectations for near-term easing have diminished and some investors sold gold to meet margin calls elsewhere in their portfolios. Gold hit an all-time high above $5,595 an ounce in late January.
Powell also made rare remarks about his future at the Fed amid a Department of Justice investigation. He said he has no intention of resigning as a governor until the probe is completed. If a successor is not confirmed before his term as chair ends in May, Powell said he would serve as chair pro tempore, a temporary designation used when the chair role is vacant. The DOJ investigation has fueled concerns about political interference at the Fed, undermined confidence in U.S. assets, and provided some underlying support for gold.
In the latest Asian update, spot gold edged up 0.4% to $4,835.55. Silver rose 0.7% to $75.87, while platinum and palladium also advanced. The Bloomberg Dollar Spot Index gained 0.1% after ending the previous session up 0.5%.
Source : Newsmaker.id
