Gold holds near $4,375 as traders weigh Fed's next move
The move follows the Fed's first rate hike since 2023 and a jump in energy prices after Aramco halted crude sales to Europe
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Chart: GLD, daily closes since Sep 2023
Gold traded near $4,375 an ounce as traders weighed how far the Federal Reserve will go on rates after its first increase since 2023. Fed Chair Schmid backed that hike, citing inflation running above 3%.
Standard Chartered now expects the Fed to raise rates again in December 2026, dropping its earlier call for no change this year.
Energy prices have added to the pressure on markets. Diesel is at $6.45 a gallon after Aramco halted crude sales to Europe. On Thursday, spot gold rose nearly 2% to $4,346.40 an ounce.
Gold pays no yield, so higher rates make it less attractive next to interest-bearing assets, while persistent inflation and the disruption to oil supply keep demand for a safe haven alive. With traders split on whether the Fed is done raising rates or has further to go, gold has no clear direction until the balance between inflation and growth becomes clearer.