Gold prices remain stable after Fed’s decision to keep rates unchanged
Date
1/30/2025 3:28:07 AM
(MENAFN) Gold prices remained steady in early Asian trading on Thursday following the Federal Reserve's decision to keep interest rates unchanged. This move provided little clarity about the direction of U.S. monetary policy for the rest of the year. Spot gold was trading at USD2,761.79 per ounce by 0049 GMT, while U.S. gold futures saw a modest increase of 0.2 percent, reaching USD2,774.50 per ounce.
The Federal Reserve's decision to maintain interest rates reflected the ongoing economic situation, including declining U.S. unemployment, sustained economic growth, and inflation rates still above target. The central bank refrained from giving any clear signals regarding future rate cuts.
Federal Reserve Chairman Jerome Powell explained that the central bank would await further evidence of progress in controlling inflation and improvements in the labor market before making any decisions on rate cuts. High interest rates tend to reduce the attractiveness of gold, which does not yield income like other assets.
The decision to keep interest rates steady had been largely anticipated, especially after the Fed had already implemented three consecutive rate cuts in the past year, totaling a full percentage point. Meanwhile, markets were also absorbing the latest developments related to U.S. President Donald Trump's plans to impose tariffs. The White House confirmed that Trump still intended to impose significant tariffs on Mexico and Canada by Saturday and was considering additional tariffs on China over the weekend.
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