Key Points
- Gold prices rose 1% on Thursday morning to $3,327.50 an ounce.
- The rebound followed the Federal Reserve’s decision to keep interest rates unchanged.
- The market’s expectation for a September rate cut has dropped significantly, from 75% a month ago to about 39% now.
- Over the past year, gold has seen a massive 42.1% increase in price.
Gold prices bounced back on Thursday, climbing 1% after the Federal Reserve announced it was keeping interest rates on hold. The precious metal opened at $3,327.50 per ounce, recovering from a dip on Wednesday when it closed below $3,300 for the first time in a month.
As of the 7:58 AM (ET) commodities update, Gold Futures have inched up by 0.14% to 3,357.6 USD/APZ, showing modest strength. In contrast, Silver Futures dropped significantly by 3.11%, trading at 36.565 USD/APZ. Platinum Futures also declined sharply by 4.41% to 1,314.3 USD/APZ. Copper Futures experienced a major slump, plunging 21.81% to 4.3675 USD/LBR. Palladium Futures fell by 2.64%, reaching 1,232.0 USD/APZ, while Aluminum Futures dipped 2.33%, priced at 2,492.75 USD.
With the Fed’s meeting now over, all eyes are on what might happen in September. The chances of an interest rate cut have been falling, with the CME FedWatch tool now showing just a 39% probability, down from over 75% a month ago.
The Fed is waiting for more data on inflation and employment to see how President Donald Trump’s tariffs are affecting the economy. Lower interest rates can boost the stock market, which sometimes makes gold a less attractive investment for some.
The precious metal has had a volatile week. While it’s up from yesterday, it’s still down about 1.4% over the past seven days. However, looking at the bigger picture, gold has gained 3.6% in the last month and is up an impressive 42.1% over the past year. Investors will now be watching the upcoming inflation and jobs reports for clues about the Fed’s next move.
