Gold holds near $5,000 – markets await signals from the Fed

Gold prices remain stable near the $5,000 per ounce mark as investors assess further actions by the US Federal Reserve. The market has virtually frozen ahead of the regulator's decision on interest rates. This is reported by Bloomberg, writes UNN.

Details

At the start of trading, the metal fluctuated around $5,001 per ounce, almost unchanged from the previous session. The Fed is expected to keep rates unchanged, but key attention will be paid to signals regarding inflation and the state of the labor market.

Rising energy prices amid the war in the Middle East complicate the prospects for rate cuts. The conflict has been ongoing for three weeks, attacks in the region continue, and supplies through the Strait of Hormuz are significantly restricted.

Rising oil prices exacerbate inflationary risks, forcing central banks to act more cautiously. High rates traditionally curb demand for gold, as this asset does not yield interest income.

Demand is supported by risks and fear of stagflation

Despite a pause in growth, gold has risen by approximately 16% since the beginning of the year. It is supported by geopolitical instability and fears of an economic slowdown with high inflation.

Investors are increasingly viewing precious metals as a safe-haven asset. Additionally, silver, platinum, and palladium also showed a slight decline, while the dollar weakened slightly after a previous fall.

Spot gold prices fell 0.1% to $5,001.61 per ounce at 6:50 a.m. in Singapore. Silver fell 0.3% to $79.03. Platinum and palladium fell. The Bloomberg Dollar Spot Index fell 0.1% after losing 0.2% in the previous session.

Gold stabilized amid falling dollar and oil crisis, silver rose slightly17.03.26, 05:16 • 5576 views