Gold climbs after fed holds rates, September hike bets fade

July 30, 2026 (MLN): Gold prices moved higher on Thursday as investors assessed the Federal Reserve’s latest policy decision and comments from Chairman Kevin Warsh on the central bank’s efforts to bring inflation under control.

Currently, spot gold is slightly up 0.40% to $4,042.18 an ounce as of [10:08 am] PST, according to data reported by Mettis Global.

The Federal Reserve kept interest rates unchanged on Wednesday in a divided decision, while Warsh reiterated the need to contain inflation. The decision left investors uncertain about the direction of U.S. monetary policy in the coming months, according to CNBC.

Markets have reduced expectations for a September rate hike following the Fed decision. According to CME Group’s FedWatch tool, the probability of a September increase has fallen to 63%, compared with around 81% before the policy announcement.

Marex analyst Edward Meir noted that markets appeared surprised and somewhat disappointed by Warsh’s stance, saying his comments suggested less urgency over raising interest rates.

Gold typically benefits from lower interest rates because it does not generate a yield, while higher rates can reduce demand for the precious metal by increasing the attractiveness of interest-bearing assets. The metal is also widely viewed as a hedge against inflation.

Investors are now turning their attention to the U.S. Personal Consumption Expenditure (PCE) data for June, scheduled for release at 1230 GMT, for further clues about inflation and the Fed’s policy outlook.

Geopolitical tensions also remained in focus after the U.S. military carried out fresh strikes in Iran on Wednesday, adding to a five-month-old conflict that has expanded beyond its main fronts and drawn additional countries into the region.

Meanwhile, oil prices surrendered some of their recent gains on Thursday as tankers continued departing the Middle East, easing some pressure on energy markets.

Copyright Mettis Link News