Gold Price Rebounds as Fed Hike Bets Fall
The gold price rebounded on Thursday after investors reduced bets on an immediate tightening cycle following the Federal Reserve's decision to keep interest rates unchanged. Spot gold rose 0.3% to $4,076.29 an ounce by 0245 GMT, while August US futures gained 1% to $4,073.60.
The Fed's hold cut immediate hike odds, lowering real-yield pressure and allowing bullion to reclaim $4,000. Analyst Edward Meir said the market interpreted Chair Kevin Warsh's remarks as less urgent than expected on the need to raise rates, helping gold recover despite the Fed's continued concern over inflation.
The next catalyst for gold is the June Personal Consumption Expenditures report, due at 8:30 am ET on Thursday. A softer print would reinforce the post-Fed repricing and could help bullion consolidate above $4,000.