The Federal Reserve’s latest decision has sparked renewed interest in gold, despite leaving interest rates unchanged. Fed Chair Jerome Powell emphasized that further rate cuts require clear evidence of slowing inflation or labor market weakness.
However, economic data suggests that inflation pressures are easing, with the PCE price index showing a 2.6% annual increase. Core inflation remains persistent, prompting the Fed to maintain a wait-and-see stance.
Central banks continue to accumulate gold as part of their long-term strategy to diversify reserves. Official sector buying has provided a strong underlying floor for gold prices, reinforcing its role as a hedge against currency risk and geopolitical instability.
Gold demand in key markets has surged, with increased deliveries to US vaults as investors hedge against trade and financial risks. The upcoming jobs report, scheduled for release next week, will have significant implications for Fed policy and gold prices. A weaker-than-expected jobs number could boost gold’s appeal, while a strong labor market reading may slow its momentum.
With uncertainty surrounding trade, inflation, and monetary policy, gold remains a key asset for investors seeking stability. The upcoming jobs report is likely to set the tone for the next move in both interest rates and gold demand.
Source: https://www.fxempire.com/forecasts/article/gold-xau-price-forecast-are-tariff-concerns-setting-the-stage-for-a-massive-rally-1494755