🟡 Hawkish Fed Keeps Pressure on Gold as Physical Demand Softens
Gold remains under pressure after the Federal Reserve maintained a hawkish stance, reinforcing expectations that interest rates could stay higher for longer. Meanwhile, physical gold premiums in major Asian markets have softened, suggesting weaker near-term buying interest.
🔹 Key Facts:
• The Fed kept rates unchanged at 3.50%-3.75%, but policymakers signaled that another rate hike this year remains possible, supporting the U.S. dollar and weighing on gold.
• Spot gold has struggled to regain momentum, with prices trading near the $4,170-$4,200 range after recent declines.
• Physical gold premiums in Asia have eased, indicating softer demand from key consuming markets amid elevated prices and uncertain macro conditions.
💡 Expert Insight:
Higher-for-longer interest rates are typically bearish for non-yielding assets like gold. However, continued central bank purchases, geopolitical risks, and uncertainty surrounding global growth could help limit downside pressure in the medium to long term.
📊 Market View:
🔴 Short-term: Bearish
🟡 Medium-term: Consolidation likely
🟢 Long-term: Structurally bullish if central bank demand remains strong
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