Gold Prices Steady as Fed Raises Rates, Contradictory Signals Abound

Spot gold prices remained steady at $4,344.29 per ounce as of 0151 GMT, while US gold futures traded at $4,381.80.

The Federal Reserve's decision to raise interest rates by 25 basis points has increased returns on cash and bonds, making gold less attractive as an investment option.

However, despite the Fed's hawkish stance, hedge demand for gold remains strong, keeping prices near their 2025 high.

In a contradictory signal, Chicago Fed President Goolsbee expressed concerns about inflation remaining elevated due to supply shock risks and increased spending on AI investments.