Gold advanced during the early trading session, likely driven by a technical rebound after the most actively traded gold futures contract settled down 2.2% overnight. Traders are still processing the Federal Reserve's decision from the previous session. Spot gold rose 0.4% to $4,836.39 per ounce. Antonio Di Giacomo, a senior market analyst at XS.com, noted in an email that while the Fed kept interest rates unchanged as widely anticipated, the decision reinforced its strategy of waiting for clearer signals before adjusting its interest rate path. "On one hand, there is room for monetary policy to ease," the analyst said. He added, "On the other hand, risks linked to oil prices and geopolitical factors are limiting the pace and extent of any potential rate cuts."
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