Gold Soars Over 2% as Fed Governor Signals Rates on Hold

Gold prices surged over 2% on Thursday after Federal Reserve Governor Christopher Waller signaled that interest rates might be kept steady at the September meeting. Waller indicated that if inflation continues to cool, he would advocate for holding interest rates stable.

The remarks led traders to scale back rate-hike bets, sending both the dollar and Treasury yields lower and supporting gold prices. The US Dollar Index was nearly flat on Thursday, but the Japanese yen surged nearly 2% against the dollar in a single day.

Goldman Sachs set a gold price target of $4,900 per ounce, citing sustained central bank buying and easing rate pressure as key factors. The firm believes that the biggest drag suppressing gold prices is now fading.