Gold dips below $4,700 as Fed holds rates steady
Gold prices fell below $4,700 per ounce Thursday after the US Federal Reserve kept benchmark rates unchanged at 3.5-3.75%, in line with market expectations. The precious metal traded around $4,690, down 2.7% for the day, while silver dropped 5.44% to $71 per ounce.
The price of gold saw below $4,700 level on Thursday as the Fed kept its benchmark rate constant. The US Fed has kept its benchmark rates unchanged at 3.5-3.75% range on Wednesday, in line with market forecasts, removing a potential catalyst for further gold price increases.
Current trading
The price of gold, hovering between $4,686.89 and $4,867.12 during Thursday, is at around $4,690 per ounce as of 0910GMT, down 2.7% day-by-day. The decline represents a pullback from recent highs, though prices remain elevated by historical standards.
Historical context
In January, the price of gold hit a historical high level nearing the $5,600 threshold, driven by geopolitical tensions and economic uncertainty. The current price remains significantly above pre-conflict levels, reflecting ongoing concerns about the Middle East war and global economic stability.
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Silver follows
Price of silver per ounce also fell by 5.44% to $71, extending losses in precious metals markets. The decline in both gold and silver suggests a broader pullback in safe-haven assets following the Fed's decision.
Market factors
The Fed's rate decision, combined with evolving dynamics in the Middle East conflict and global oil prices, continues to influence precious metals markets. Investors are closely watching the trajectory of the Iran war and its impact on global economic stability.
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