At the time of writing, spot gold (XAU/USD) was up 4.6% at $5,418 an ounce.
- The Fed announced that it will hold key interest rates at 3.50% - 3.75%, in line with market expectations.
- Powell in a press conference on Wednesday said that the Federal reserve will take decisions on future rate cuts on a meeting by meeting basis.
- The Fed said Inflation remains somewhat elevated.
Gold breached the $5,400 mark for the first time after the Federal Open Market Committee (FOMC) decided to keep the key rates steady and said the inflation is still somewhat elevated.
At the time of writing, spot gold (XAU/USD) was up 4.6% at $5,418 an ounce. Gold futures for February deliveries surged more than 4.3% to $5,303 an ounce.
Rate Unchanged
The Fed announced that it will hold key interest rates at 3.50% - 3.75%, in line with market expectations.
“Available indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, and the unemployment rate has shown some signs of stabilization. Inflation remains somewhat elevated,” the Federal Reserve said in a statement.
The move was widely anticipated by the markets after policymakers delivered three consecutive 25-bps rate cuts in September, October, and December 2025 amid rising inflation and growing unemployment at the time.
No Rate Cut In Sight
Powell in a press conference on Wednesday said that the Federal Reserve will take decisions on future rate cuts on a meeting by meeting basis, by adding that the FOMC committee was broadly in support of holding the interest rates in its first policy meeting of 2026.
“Haven't made any decisions about future meetings, but the economy is growing at a solid pace,” he added.
Retail Watch
Retail sentiment on SPDR Gold Shares ETF on Stocktwits remained in the ‘extremely bullish’ territory over the past 24 hours, amid ‘extremely high’ message volumes/
One user predicted the gold to $6,000 mark.
Another bullish user said that “It's clear that the US Dollar has been permanently damaged by Donald Trump and his attack on EVERYONE. Gold could easily see a run to $10,000 within a month”.
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