(RTTNews) – Gold prices rose sharply on Thursday, bouncing back from a one-month low in the previous session, as a sharp rise in oil prices to a four-year high heightened inflation concerns.
The US Federal Reserve’s status quo decision on interest rates for the third consecutive meeting also affected sentiment.
In the most divided FOMC vote since October 1992, the Fed kept rates on hold on Wednesday, as widely expected.
Spot gold jumped 1.8 percent to $4,626.50 an ounce, while U.S. gold futures rose 1.7 percent to $4,638.56.
Oil prices rose to their highest level since 2022 amid stalled US-Iran talks and concerns that supply disruptions could last longer than initially expected.
The dollar index was slightly lower in European trading after hitting its highest level more than two weeks ago.
Media reports suggest the US is preparing to launch a series of ‘small and powerful’ strikes on Iran, which would end a fragile ceasefire.
Tehran released new visuals showing military preparations and preparations for war, warning that any escalation could have serious consequences.
The US is also seeking international help to restore freedom of navigation in the Strait of Hormuz. Two months into the war, the closure of the waterway has taken nearly a seventh of the world’s oil supply offline.
Concluding his final press conference in the role, Fed Chairman Jerome Powell said on Wednesday that energy price rises have not yet peaked and a prolonged oil shock could have a growing impact on the global economy and monetary policy outlook.
Powell also said he would not leave the Fed board until the legal challenges brought by President Trump are “well and truly exhausted.”
Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari and Dallas Fed President Laurie Logan supported keeping rates unchanged, but “did not support incorporating a comfort bias into the statement at this time,” signaling a subtle shift toward a more dovish stance.
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