Fed Holds Rates Steady as Gold Prices Remain Near $4,060

Gold prices remained steady following the US Federal Reserve's decision to keep interest rates unchanged. Despite rising inflationary risks due to the escalating war in the Middle East, the Fed voted 9-3 in favor of holding rates.

Bullion was near $4,060 an ounce, having advanced nearly 1% on Wednesday. However, it has been down by nearly a quarter since the US-Iran war began over five months ago, with high energy prices stoking inflationary pressures and raising the likelihood that rates will stay higher for longer.

Nicky Shiels, head of research and metals strategy at MKS PAMP SA, believes that gold can expect relief rallies following the Fed's decision. She noted that $4,200 is a 'key inflection point' for the metal.