Gold climbs back above $4,070 after Fed holds rates
Gold and silver rose in early global trade on Thursday 29 October after the United States Federal Reserve kept interest rates unchanged, while investors continued to assess inflation and developments in West Asia. On the COMEX exchange, gold futures were trading at $4,073.70 per ounce, up 0.55%, while silver futures rose 0.99% to $54.195 per ounce, according to the latest available quotes reported in early trading. The gains followed pressure on both metals on Wednesday ahead of the Fed's decision, when traders were reluctant to take large positions before knowing the outcome.
A steady Fed leaves the next move unclear
The Federal Reserve kept its benchmark rate unchanged on Wednesday, citing elevated inflation and the need for more information before deciding its next move. That leaves the outlook uncertain: market participants have been pricing in the possibility of another rate rise before the end of the year, while the Fed has not given a clear signal on December. Higher interest rates generally weigh on gold and silver because the metals pay no interest, making interest-bearing assets relatively more attractive, while expectations of lower rates can support demand for precious metals instead.
A choppy week for bullion
The rebound still follows a choppy week. Spot gold had been recorded at about $4,039 per troy ounce in trading on Wednesday, down roughly 0.49% from the previous benchmark, according to Kitco data reported before the Fed announcement. In India, gold prices in New Delhi had risen by ₹700 to ₹1.46 lakh per 10 grams on Wednesday, while silver was unchanged at ₹1.98 lakh per kilogram, according to traders quoted by PTI. For now, the market's direction is likely to turn on the next inflation data and on whether West Asia tensions ease or escalate further.
