Gold holds above $2,770 as Fed maintains rates and markets assess Hawkish pause

Gold holds above $2,770 as Fed maintains rates and markets assess Hawkish pause

Gold prices rose in early Thursday trading, holding above the $2,770 level after reaching a one-week high. The precious metal found support following the Federal Reserve’s decision to keep interest rates unchanged in what was widely viewed as a hawkish pause. Despite Jerome Powell’s remarks suggesting that rates may remain higher for longer due to persistent inflationary risks and a robust labour market, the reaction in US Treasury yields was muted, as investors remained concerned about the potential fallout from the new administration’s protectionist policies. This environment is favourable for non-yielding gold, which continues to attract haven flows from investors seeking protection amid economic uncertainty.

Ricardo Evangelista – Senior Analyst, ActivTrades

Source: ActivTrader

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