At 13:31 GMT, XAU/USD is trading $3358.24, down $12.14 or -0.36%.
Federal Reserve Pushback on Rate Cuts Weighs on Gold
The latest FOMC statement reinforced the Fed’s cautious stance, maintaining rates in the 4.25%–4.50% range. However, it also reduced the number of anticipated rate cuts this year, citing a challenging economic environment. Traders trimmed long positions in gold, silver, and platinum following the meeting, booking profits after weeks of anticipating a more dovish pivot. With gold thriving in low-rate conditions, any delay in easing dampens its appeal.
President Trump has continued to push for aggressive rate cuts, calling for a 2.5 percentage point reduction, but the Fed appears unmoved for now. The dollar index rose 0.5% this week, posting its largest weekly gain in over a month and putting additional pressure on gold by making it more expensive for foreign investors.
Middle East Tensions Ease Slightly but Remain a Wildcard
Safe-haven demand also eased slightly after markets interpreted recent White House comments as suggesting a cooling period in the Israel-Iran conflict. Trump has given himself a two-week window to decide on U.S. involvement. That temporary lull in geopolitical tension has reduced urgency for haven flows into gold. Nevertheless, the situation remains fluid, and any escalation could revive demand.
