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Gold holds in $4,000-$4,200 range as Fed and yields steer moves
Gold traded around $4,080 after recovering above $4,100, but a climb in the 30-year Treasury yield above 5.2% and hawkish rate pricing limited follow-through.
Gold price action has stayed rangebound between $4,000 and $4,200, with XAU/USD last seen around $4,080 during European trading on Thursday, after an intraday low near $4,028.
FXStreet reports the move came after the Fed left interest rates unchanged in the 3.50% to 3.75% range, which briefly helped gold push above $4,100 as traders reduced positions tied to a potential surprise hike, weakening the US dollar and front-end Treasury yields.
However, longer-dated yields advanced, capping gains, as the 30-year yield climbed above 5.20% for the first time since 2007 amid expectations shaped by Chair Kevin Warsh’s inflation stance and dissenting votes for a 25 basis point hike.
With the next catalyst set for the US PCE Price Index, scheduled for 12:30 GMT, gold remains tied to shifting rate expectations, while FXStreet also notes geopolitical risk, including a heavy wave of strikes against Iran, is keeping energy-driven inflation concerns elevated.
Latest closeGold $4,157.80 ▲0.4%