Fed Hold Triggers Gold Rebound as Market Awaits June Inflation Data

Gold prices rebounded on Thursday as investors reduced bets on an immediate interest rate hike following the Federal Reserve's decision to keep rates unchanged. The Fed's hold cut immediate hike odds, which lowered real-yield pressure and allowed bullion to reclaim $4,000.

The next catalyst for gold is the June Personal Consumption Expenditures report, due Thursday at 8:30 am ET. A softer inflation reading could reinforce the post-Fed repricing and help bullion consolidate above $4,000.

Marex analyst Edward Meir said the market interpreted Fed Chair Kevin Warsh's remarks as less urgent than expected on the need to raise rates, which helped gold recover despite the Fed's continued concern over inflation.