Gold Price Fluctuates After Fed’s Decision to Maintain Rates
By [Errraand News]
Current Date 01/02/2024
The gold market experienced volatility as XAU/USD fluctuated within the $2030 to $2050 range following the US Federal Reserve’s(Gold Price Fluctuates)
The gold market experienced volatility as XAU/USD fluctuated within the $2030 to $2050 range following the US Federal Reserve’s decision to keep interest rates unchanged. Investors closely watched the central bank’s stance on monetary policy, impacting gold prices in the process.
Fed officials voted unanimously to maintain current interest rates during their monetary policy meeting. They emphasized the importance of seeing inflation decrease towards the 2% target before considering any rate adjustments. The Federal Reserve noted that the risks associated with achieving its dual mandate are moving into better balance. The committee pledged to remain “highly attentive” to inflation risks, signaling a cautious approach to any future policy changes.
The decision also included insights into the reduction of the balance sheet, which would follow the previously outlined plan. Additionally, the Fed announced tightening restrictions on all staff members with access to confidential Federal Open Market Committee (FOMC) information.
Following the announcement, the US 10-year Treasury note yield experienced a spike to 4% before retracting slightly to around 3.97%. Simultaneously, the US Dollar Index (DXY) initially rose toward 103.50 but settled around 103.35.