Gold price (XAU/USD) faces some selling pressure near $4,830 during the early Asian session on Thursday. The precious metal declines for a sixth consecutive day, its longest losing streak since late 2024, as Federal Reserve (Fed) Chair Jerome Powell said higher energy prices will push up overall inflation.
The Fed held interest rates steady at its March meeting on Wednesday, maintaining the benchmark Federal Funds Rate in a target range of 3.5% to 3.75%. This was the second meeting in a row with no change as policymakers navigate economic uncertainty fueled by the ongoing war in Iran and persistent inflation.
The central bank signaled that it still expects one cut this year, even though traders pull back their bets for rate reductions in 2026. “Powell has somewhat walked back the statement, which wasn’t as hawkish as feared, but focusing on the dual mandate, keeping rates restrictive for longer,” said Nicky Shiels, head of metals strategy at MKS PAMP SA.
On the other hand, escalating tensions in the Middle East might boost the safe-haven flows, benefiting the precious metals. Iran and Israel traded strikes on key energy facilities in the Middle East.
The strike followed a warning from Iranian army chief Amir Hatami, who vowed to launch a “decisive and regrettable” retaliation for the killing of security chief Ali Larijani in an Israeli air strike.
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