Gold prices are trading lower during the Asian session, with the precious metal seemingly stuck within a consolidation range observed over the past several weeks.
According to market analyst Crispus Nyaga, the price action may be a direct response to the Federal Reserve's recent decision to hold interest rates steady. He noted that while traders had initially anticipated a rate hike at the next meeting, the probability of the central bank maintaining its current stance may have increased following the release of the latest US Personal Consumption Expenditures (PCE) price index.
Nyaga added that despite this near-term pause, major central banks are still expected to tighten monetary policy in the coming months. A higher interest rate environment typically acts as a headwind for non-yielding assets like gold.
In the spot market, gold was last seen trading 0.3% lower, changing hands at $4,091.57 per ounce.
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