Gold prices soared immediately after the Federal Reserve announced its interest rate decision. As soon as the FOMC minutes were released, gold, which had been moving cautiously since the beginning of the session, suddenly rose sharply as the market read signals that the era of high interest rates was nearing its end. Within minutes of the announcement, gold prices surged and held steady near their daily highs as new buying inflows from market participants.

Generally speaking, the Fed did cut interest rates as expected, but what triggered the gold surge was Jerome Powell's statement, which was perceived as more dovish. Powell emphasized the risk of an economic slowdown and opened the door to further policy easing if data supports it. This statement immediately put downward pressure on US bond yields and weakened the US dollar, two key factors that typically fuel gold price gains.

For investors, the combination of potentially lower interest rates, a weakening dollar, and global economic uncertainty has re-emerged as a key hedge. Several analysts believe that if the Fed consistently signals easing and inflation data continues to decline, gold's upward trend is likely to continue. However, volatility still needs to be monitored, as every new comment from a Fed official or economic data release could trigger further sharp movements. (Cay)

Source: Newsmaker.id