Gold Prices Steady as Fed Rate Uncertainty and Ebbing Risk Appetite Keep Investors Cautious

Gold Nears $3,180 as Market Awaits Powell Speech, US Economic Data, and Fed Policy Signals

Gold prices steadied on Thursday following a sharp decline earlier in the week, as investors scaled back exposure to risk assets and braced for fresh signals from the Federal Reserve regarding the path of interest rates. The yellow metal hovered near $3,180 an ounce, recovering slightly from a one-month low, as the broader market refocused on monetary policy risks and upcoming US macroeconomic data.

Highlights:

• Spot gold holds near $3,180/oz, up after a 2% slump on Fed repricing.

• Investors await Fed Chair Jerome Powell’s speech and key US data releases.

• Lower risk appetite and mixed geopolitics underpin gold’s safe-haven status.

Fed Rate Outlook and US Data Now Crucial for Gold’s Short-Term Direction

On Wednesday, signs emerged that the Federal Reserve may not cut rates as aggressively as earlier expected, prompting a sell-off in gold. The sharp pullback reflected reduced demand for safe-haven assets amid shifting monetary policy expectations. Market participants are now eyeing Powell’s Thursday speech, along with critical US releases including retail sales, jobless claims, and producer prices, for further clarity.

Higher interest rates and bond yields typically weigh on non-yielding assets like gold, although they can also suppress enthusiasm for volatile equity and crypto markets, which indirectly benefits bullion. The Fed’s stance will be key to determining whether gold continues to hold above technical support or corrects further.

Highlights:

• Fed repricing triggered $70+ drop in gold on Wednesday.

• April retail sales, jobless claims, and PPI data expected to influence Fed policy bets.

• Gold’s direction linked to real yield expectations and bond market moves.

Gold Still Underpinned by Central Bank Buying, ETF Demand, and Chinese Speculation

Despite near-term volatility, gold remains one of the top-performing assets of 2025, with prices up over 20% year-to-date. Demand continues to be driven by record central bank purchases, rising inflows into gold-backed ETFs, and speculative interest in China amid broader economic uncertainties.

However, analysts warn of a potential deeper correction if key technical levels break. According to Oversea-Chinese Banking Corp’s Christopher Wong, gold may find support in the $3,050–$3,150 range, but a decisive breach could open the door to a fall toward $2,950.

Highlights:

• Gold up 20% YTD amid ETF demand and central bank purchases.

• Chinese speculative buying remains a strong bullish driver.

• Analysts see risk of retreat to $2,950 if current support fails.

Geopolitical Tensions Ease but Offer Limited Impact on Gold

Gold largely shrugged off President Trump’s comments that a US-Iran nuclear agreement may be in sight. Such developments typically depress gold as geopolitical risk recedes, but the reaction has been muted given the dominating influence of interest rate expectations.

Meanwhile, the Bloomberg Dollar Spot Index fell 0.2%, lending mild support to gold in dollar terms. Among precious metals, silver retreated, while palladium and platinum posted modest gains.

Highlights:

• Gold insensitive to Trump-Iran peace signals, with market fixated on rates.

• Dollar weakness offers marginal support to bullion.

• Silver down; palladium and platinum post modest upticks.