Gold Pauses After Four-Day Rally as Fed Decision Looms: World Gold Council Survey Shows Central Banks Buying More

Key Takeaways

• Gold steadies: Spot gold edged down 0.1% to $4,327.56 per ounce, while gold futures ticked 0.2% lower to $4,347.26 — pausing after four straight sessions of gains.
• Rebounding from depths: Bullion has recovered significantly from recent multi-month lows near $4,000 per ounce.
• Iran deal the catalyst: The peace accord — including Iran’s oil export resumption and ceasefire extension — has pushed crude sharply lower and eased inflation shock fears.
• Rate hike bets retreat: Lower energy prices are prompting investors to scale back monetary tightening expectations — a tailwind for non-yielding gold.
• Dollar near 10-day low: The greenback’s retreat has provided additional support for bullion.
• Fed decision today: Chair Kevin Warsh’s first policy announcement is the day’s key event; rates widely expected to hold.
• Dot plot in focus: Investors will scrutinize updated economic projections for clues on whether the Fed still sees scope for easing later in 2026.
• Hawkish risk remains: A hawkish tone from Warsh could lift Treasury yields and the dollar, potentially capping gold’s rally.
• Central banks still buying: A World Gold Council survey showed 45% of central bank reserve managers plan to increase gold holdings over the next year.
• Silver rises: Spot silver gained 0.5% to $70.34 per ounce.
• Platinum slips: Spot platinum fell 1.1% to $1,788.72 per ounce.
• Copper advances: LME copper edged up 0.3% to $13,833.33 per ton; U.S. copper futures rose 1% to $6.54 per pound.

Gold prices held steady on Wednesday after four consecutive sessions of gains, as an interim U.S.-Iran peace agreement eased some concerns about energy-driven inflation, while investors awaited the outcome of the Federal Reserve’s policy meeting later in the day.

Spot gold edged down 0.1% to $4,327.56 an ounce by 03:14 ET (07:14 GMT), while U.S. gold futures ticked 0.2% lower to $4,347.26 per ounce.

The precious metal advanced in the last four sessions after rebounding from recent multi-month lows near $4,000 per ounce.

Iran Deal Eases Inflation Fears

Sentiment was supported by optimism surrounding the U.S.-Iran accord aimed at ending hostilities in the Middle East.

The agreement — which includes provisions allowing Iran to resume oil exports and extends a ceasefire while negotiations continue — has helped push crude prices sharply lower and eased fears of a renewed inflation shock.

Lower energy prices have prompted investors to scale back expectations for tighter monetary policy, a positive development for non-yielding bullion.

Gold has also benefited from the resulting decline in the U.S. dollar, with the Dollar Index hovering near a 10-day low.

Fed Decision the Day’s Pivotal Event

The market’s focus is now squarely on the Federal Reserve’s first policy announcement under Chair Kevin Warsh. The central bank is widely expected to keep interest rates unchanged, but investors will closely scrutinize updated economic projections and the so-called dot plot for clues on the future path of policy.

Markets are particularly sensitive to any signal on whether policymakers still see scope for easing later this year. A hawkish tone from the Fed could lift Treasury yields and the dollar — potentially capping gold’s recent rally.

Central Banks Remain Structurally Bullish on Gold

Underlying demand for gold also remains robust. A recent World Gold Council survey showed that 45% of central bank reserve managers expect to increase their gold holdings over the next year — underscoring continued interest in the metal as a portfolio diversifier and geopolitical hedge.

Among other precious metals, silver prices rose 0.5% to $70.34 per ounce, while platinum fell 1.1% to $1,788.72 per ounce.

Benchmark copper futures on the London Metal Exchange edged up 0.3% to $13,833.33 a ton, while U.S. copper futures rose 1% to $6.54 per pound.