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Gold rebounds near $4,100 after the Fed holds rates unchanged

Gold rose to about $4,095 after the Fed kept its Federal Funds Rate at 3.50% to 3.75%, even as three dissenting votes backed a 25-basis-point hike.

Reported · Written up by our desk · Major Pairs

Gold prices rebounded to around $4,095 in early Asian trade on Thursday, according to FXStreet, following the US Federal Reserve decision to leave interest rates unchanged.

The Fed held its Federal Funds Rate in the 3.50% to 3.75% target range at its July policy meeting, even though the statement included three dissenting votes in favor of a 25-basis-point rate hike.

FXStreet also pointed to heightened Middle East tensions, citing reports that Iran’s Islamic Revolutionary Guard Corps fired ballistic missiles overnight at a US airbase and command center in Jordan, with all missiles intercepted, alongside strikes on Tehran-backed militias in Iraq.

The outlet noted that analysts have suggested the downside in gold may be overstated and argued expectations for a more aggressive Fed path may be excessive, while investors continued to weigh gold’s role as a non-yielding, safe-haven asset amid uncertainty around crude oil and the timing of future rate moves.

Latest closeGold $4,134.80 ▲2.4%|WTI crude $84.41 ▲6.5%

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