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Macro Score 82 Bearish

Gold Stabilizes as Fed Maintains Rates Amid Geopolitical Tensions

Apr 29, 2026 22:32 UTC
XAU, GC=F
Medium term

Gold prices found a floor near $4,550 per ounce after the Federal Reserve opted to keep interest rates unchanged. The central bank highlighted inflation risks and economic uncertainty stemming from the conflict in Iran.

  • Gold price stabilized near $4,550 per ounce
  • Bullion experienced a 3.4% decline over the previous three sessions
  • Fed signals inflation risks linked to the conflict in Iran
  • Market participants have abandoned bets on a rate cut this year
  • Potential rate hikes are now being priced in for 2027

Gold prices stabilized in early trading after a period of volatility, settling near $4,550 per ounce. This stabilization follows a three-day decline of 3.4% as investors reacted to the latest policy stance from the U.S. Federal Reserve. The Federal Reserve's decision to hold interest rates steady comes amid a complex macroeconomic backdrop. Central bank officials noted that the ongoing war in Iran is creating significant uncertainty, clouding the broader economic outlook and complicating the path for future monetary policy. Market participants have shifted their expectations significantly in response to these signals. Wagers on a rate cut within the current year have largely vanished, with traders now pricing in the possibility of a rate hike as far out as 2027. The prospect of higher-for-longer rates, driven by persistent inflation risks, creates a challenging environment for non-yielding assets like gold. While geopolitical instability typically supports bullion as a safe haven, the pressure from rising real yields and inflation concerns is currently offsetting those gains.

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