"With forecasts now pricing out near-term easing entirely, pushing the first expected cut until next year, yields have firmed, eroding gold's appeal as a non-yielding asset."
"The Federal Reserve kept its interest rates unchanged as inflationary concerns continue to be fuelled by rising oil prices."
"Looking ahead, gold's near-term trajectory could remain weighed down by the current inflationary concerns. In this regard, the market could remain exposed to the developments in the Middle East and their impact on energy prices."
Gold experienced an extended losing streak, reaching its weakest level in multiple weeks due to shifting interest rate expectations. The Federal Reserve maintained unchanged rates amid persistent inflationary pressures driven by rising oil prices. Market forecasts now price out near-term rate cuts entirely, with the first expected cut pushed into next year. This shift has firmed yields, diminishing gold's attractiveness as a non-yielding asset. Near-term gold performance faces headwinds from ongoing inflationary concerns and Middle East tensions affecting energy prices. Economic data releases, including jobless claims, may influence the metal's trajectory, though their impact appears limited under current market conditions.
Read at London Business News | Londonlovesbusiness.com
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