Gold prices held near $4,830 per ounce on Thursday after a sixth consecutive decline—the longest losing streak since late 2024—as the Federal Reserve’s hawkish stance outweighed mounting geopolitical risks. The Fed left interest rates unchanged and signaled only one cut for this year, with Chair Jerome Powell emphasizing that any easing will depend on clearer, sustained progress in bringing inflation down.
Policymakers also underscored growing uncertainty stemming from the conflict in the Middle East, cautioning that higher energy prices could add renewed inflationary pressure. In a major escalation, Iran launched missile strikes on a Qatari site that hosts the world’s largest LNG facility, following an Israeli attack on Iran’s South Pars gas field. The flare-up bolstered safe-haven demand for gold but simultaneously pushed oil prices higher.
Despite the recent pullback, gold is still up about 12% year-to-date. However, its upward momentum has faded as expectations for the extent of Fed rate cuts have been scaled back and some investors have liquidated gold positions to cover margin calls in other markets.
