Gold Prices Rebound After Fed Decision Reduces Tightening Bets

Gold prices rebounded on Thursday after the Federal Reserve kept interest rates unchanged, reducing bets on an immediate tightening cycle. 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 decision was seen as a reduction in near-term tightening expectations, which can support the metal even when policymakers maintain a hawkish inflation message. The market interpreted Chair Kevin Warsh's remarks as less urgent than expected on the need to raise rates.

Now attention turns to the June Personal Consumption Expenditures report, due at 8:30 am ET on Thursday. A softer-than-expected inflation reading could reinforce the post-Fed repricing and help bullion consolidate above $4,000.