Fed Decision Fails to Boost Dollar, Gold Price Breaks Trend

Gold is often viewed as a safe-haven asset, and its price is influenced by geopolitical events, inflation rates, and shifts in interest rates. In times of global economic uncertainty, gold remains the primary defensive asset in investment portfolios.

The Federal Reserve left interest rates unchanged at 3.5%, 3.75%, but three members dissented and called for a 25bp hike. Despite this, the US dollar was broadly lower as the meeting was not deemed as hawkish as many had expected.

Gold prices are also influenced by statements from prominent figures such as Trump, who mentioned that Iran is asking not to be hit, but that 'it's our turn' and they will 'hit them hard'. However, it seems that the US dollar's decline has helped gold break above a minor downtrend.