Gold Prices Stabilize Amid Fed Uncertainty and Geopolitical Shifts
Gold prices are nursing their wounds after last week's decline, which saw the metal fall 1.54 percent to $4,098.60 per ounce. The pullback was partly due to the Federal Reserve's latest policy meeting, where rates were held steady at 3.5 to 3.75 percent for a second consecutive meeting. However, the 9-to-3 vote revealed visible dissent among regional presidents, who pushed for a hike citing stubbornly high inflation.
The geopolitical landscape is also shifting, with US President Donald Trump signaling a pause in planned strikes on Iran and opening the door to fresh negotiations. This has led to a dramatic unwinding of the war premium that had built up since hostilities erupted in late February, causing Brent crude to tumble 4.69 percent to $83.81.
The dollar's weakness is also providing a boost to gold buyers outside the US, as a softer greenback makes the metal more affordable. Tokyo's intervention has added another layer of uncertainty to the dollar outlook, with markets watching for further moves that could extend the tailwind for bullion.