Traders are watching closely as gold reclaims the June 30 settlement at $3303.15 — a key monthly level that could determine directional bias going into August.
At 10:35 GMT, XAU/USD is trading $3303.43, up $28.14 or +0.86%.
Fed Leaves Rates Unchanged, But Inflation Concerns Remain
The Federal Reserve held interest rates steady at 4.25%–4.50% on Wednesday, as expected. However, Chair Jerome Powell offered no firm guidance for the September meeting, noting it was “too soon” to say whether the Fed will cut.
Some dissent within the Fed — with officials Bowman and Waller opposing the decision — underscores growing uncertainty in the committee. Powell signaled a wait-and-see approach, pointing to risks from recently announced tariffs and upcoming inflation data.
The Fed’s preferred inflation gauge, the core PCE index, is due later Thursday. Economists forecast a 0.3% month-on-month increase and a 2.5% annual rise. Market participants will scrutinize the data for signals on whether tariffs are beginning to drive up prices — a factor that could delay any potential rate cuts.
China Trade Deal Uncertainty Boosts Safe-Haven Gold Demand
Fresh tariff measures from President Trump have also lifted demand for gold. On Wednesday, Trump reinstated and expanded levies on imports from South Korea, Brazil, and India, while ending exemptions for small-value overseas shipments. A 15% tariff on South Korean goods was confirmed, and a 50% tariff on Brazilian imports was announced.
