Gold prices steady after FOMC meeting

Gold prices rose after the Fed meeting, but worries about high U.S. interest rates for an extended period capped further gains.

Gold prices have settled after regaining ground above $2,300 an ounce, but concerns about sustained high U.S. interest rates capped gains.

The yellow metal got a lift as the U.S. dollar retreated from near six-month highs after the Fed kept interest rates unchanged as widely expected. While policymakers signalled they were in no hurry to begin cutting rates, ruling out further hikes offered temporary respite for gold.

Spot gold (XAU/USD) traded at $2,314.09 per ounce by 08:10 GMT, having recovered from a low of $2,280.91 hit yesterday.

Chair Jerome Powell acknowledged that disinflation has stalled, with price growth still well above the 2% target, giving the central bank little impetus to start an easing cycle soon. His mixed messages quashed hopes for an imminent rate cut after the pause.

Though gold drew support from reduced rate hike bets, fading safe-haven demands and the prospect of higher rates for longer are expected to keep a lid on rallies in the precious metal.

Subscribe to Investomania for more gold news and updates.

Sign up for Investomania

Subscribe to the Investomania newsletter to have our daily recap delivered directly to your inbox.

No spam. Unsubscribe anytime.