Gold retreated more than 2% in Wednesday trading after the Federal Reserve (Fed) opted to keep interest rates on hold despite an increase in risk appetite following the start of tariff talks between the United States and China.
At 9.20 am, gold prices were at $3,391.75, up 0.78% since it opened in early trading Thursday in the Asian session.
The Federal Reserve (Fed) kept rates steady around 4.25%-4.50% at its third consecutive meeting in 2025 driven by growing uncertainty over the economic outlook, maximum employment risks and price stability.
Jerome Powell maintained a neutral tone, saying that the current policy stance that the Fed is in no hurry to adjust the current level.
He stressed the central bank’s readiness to act in a timely manner if conditions change, but warned that the Fed’s mission becomes increasingly difficult if high tariffs are maintained.
However, gold prices remain supported amid ongoing conflicts between Russia-Ukraine, Israel-Hamas and India-Pakistan.
