Gold little changed after US Fed holds rates steady

GOLD prices were flat in early Asian hours on Thursday (Jan 30) after the Federal Reserve’s decision to hold interest rates steady offered little clarity on the US monetary policy path this year.

Spot gold were little changed at US$2,671.79 per ounce, as at 0049 GMT. US gold futures added 0.2 per cent to US$2,774.50.

The US central bank held interest rates steady on Wednesday and its chair Jerome Powell said the Fed would wait for signs of further progress on inflation, or of labour market weakness before it would cut interest rates further.

Higher interest rates dampen non-yielding bullion’s appeal.

The Fed’s rate decision on Wednesday was widely anticipated, following its rate cuts in 2024, which reduced the benchmark rate by a full percentage point.

Traders also digested US President Donald Trump’s latest tariff threats after the White House said he still plans to hit Mexico and Canada with steep tariffs on Saturday and he is “very much” considering some on China during the weekend.

Trump’s policies, which are also being perceived as inflationary, could lead to the Fed keeping rates higher for longer and diminish gold’s appeal as an inflation hedge.

Meanwhile, the European Central Bank is all but certain to cut interest rates later in the day.

Elsewhere, London bullion market players are racing to borrow gold from central banks, following a surge in gold deliveries to the US on speculation of potential import tariffs there.

Spot silver was up 0.2 per cent at US$30.85 per ounce, platinum added 0.7 per cent to 952.49, and palladium gained 0.5 per cent to US$967.38. REUTERS