Gold Hits Six-Week Low

Gold dropped to around $4,750 per ounce on Thursday, declining for the seventh session to hit a nearly six-week low, as the Federal Reserve’s hawkish outlook weighed on its non-yielding appeal. The Fed kept interest rates unchanged, as expected, saying the uncertain economic impact of the conflict involving Iran and highlighting persistent upside risks to inflation. Policymakers signaled that rate cuts will remain on hold until there is clearer evidence that price pressures are easing, although they still project one reduction this year. Meanwhile, geopolitical tensions escalated after Iran launched missile strikes on a site in Qatar housing the world’s largest LNG facility, following an Israeli attack on Iran’s South Pars gas field. While this supported safe-haven demand, it also pushed oil prices higher. Gold remains up about 12% year-to-date, but momentum has weakened as rate cut expectations fade and some investors sell to meet margin calls.