Gold continued to trade horizontally on Thursday after recording some volatility as traders reacted to the Federal Reserve’s interest rate decision.
While it decided to cut rates as expected, the FOMC was divided with multiple dissents. The split vote left markets without a clear signal on the pace of easing for next year.
However, the market could find some support as traders’ expectations continue to point to two rate cuts in 2026, while the Fed’s forecasts point to one. As a result, upcoming data could play a key role in shaping expectations and could drive gold’s price moves.
In the meantime, the metal could continue to find support in the rising geopolitical tensions in several regions, including in the Middle East, Eastern Europe, and Asia. Relations between China and Japan remain strained, while in Eastern Europe, peace talks lack material results.
Meanwhile, the Swiss National Bank held rates at 0% this morning, reinforcing a broadly low-yield global backdrop that supports non-yielding assets such as gold. Central banks’ gold purchases could also remain a force behind gold’s strength.
