Gold Edges Higher as Dip-Buyers Step In After a Six-Day Slide
Gold regained some ground after plunging nearly 4% on Wednesday, as dip-buyers helped the metal stabilize despite rising oil prices and renewed inflation risks tied to the Middle East war.
Bullion rose as much as 0.7%, clawing back part of the losses after six straight sessions of declines—the longest losing streak since late 2024. The Federal Reserve held interest rates steady at its latest meeting and projected just one cut this year, with Chair Jerome Powell saying any reduction would require clear progress on cooling inflation. Fed officials also said the conflict has made the outlook for the U.S. economy “uncertain.”
Oil pushed higher on Thursday after Iran and Israel traded strikes on some of the most important energy facilities in the Persian Gulf. Nearly three weeks into the war, soaring crude and gas prices are lifting inflation risks and making rate cuts by the Fed and other central banks less likely—typically a headwind for non-yielding gold. A stronger dollar has also weighed on commodities priced in U.S. currency.
“Dollar strength and broader tightening pressures across developed-market central banks present an uncertain near-term pathway for gold,” said Nicholas Frappell, global head of institutional markets at ABC Refinery. “But if inflation rises faster than policy rates, falling real rates may help gold in the medium term.”
Gold is still up roughly 12% so far this year, but upside momentum has stalled in recent weeks as near-term rate-cut expectations have faded and some investors sold bullion to meet margin calls elsewhere in their portfolios. Gold hit an all-time high above $5,595 an ounce in late January; from the start of the war on Feb. 28 through Wednesday’s close, it has fallen nearly 9%.
After the Fed meeting, Powell also made rare remarks about his future at the central bank amid a Department of Justice investigation. He said he has no intention of resigning as a governor until the probe is complete. 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 role used when the chair position is vacant. The DOJ probe 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 rose 0.4% to $4,835.55 an ounce at 9:21 a.m. in Singapore. Silver edged up 0.2% to $75.49, platinum was little changed, and palladium advanced. The Bloomberg Dollar Spot Index slipped 0.1% after gaining 0.5% in the previous session.
Source : Newsmaker.id
