Gold Stabilises at $4,835 After Six-Day Fall
Synopsis
90-Word Meta Description Gold held steady around $4,835 an ounce on Thursday after sliding 3.7% in the previous session to a one-month low of $4,818, its sixth consecutive day of declines. The decline came after the US Federal Reserve paused interest rates at 3.50%–3.75%, also upwardly revising a forecast for inflation due to surging oil prices from an ongoing US-Iranian war. Fed Chair Jerome Powell said Tuesday that the oil shock will press inflation higher and that the situation in the Middle East is still deeply uncertain. Markets now price in just a single rate cut, and not until December 2026.
Gold steadied at $4,835 after six days straight. The Fed kept the rates unchanged and rising oil prices due to the Iran war pushed inflation even higher, reducing the chances of rate cuts in the future.
Key Highlights
- Gold has studied for a sixth day in a row, its longest streak since late 2024.
- It fell 3.7% on Wednesday to $4,818 an ounce.
- The Fed held interest rates steady at 3.50%–3.75%.
- The Fed is now anticipating that inflation will climb still further on steep oil prices.
- No cut expected before December 2026 on markets.
Gold Holds Steady Around $4,835 After Worst Week in More Than a Year
Gold stopped its decline on Thursday. It steadied at around $4835 ounce after dropping sharply the day before. On Wednesday, gold dropped 3.7% to $4,818 an ounce, the lowest price it has had since early February. Gold futures fell the same percentage, settling at $4,823. It was the sixth straight day that gold had fallen; it was its longest such streak since late 2024.
The Fed Held Rates Steady but Said Conditions Are Wrenching
On Wednesday, the US Federal Reserve held its latest meeting and left interest rates unchanged at 3.50%–3.75%. That was expected. What markets found surprising was the message that accompanied it.
Inflation is now expected to go higher this year, the Fed said. Jerome Powell, the Fed chair, blamed the rising oil prices directly for changes in gold. He said the situation in the Middle East has caused uncertainty and that the Fed should wait for further developments before taking any action.
The Iran War Is Driving Oil Up, A Bad News for Gold
Since the war between the US, and Iran began on 28 Feb, oil has remained above $100 a barrel. That is because the Strait of Hormuz, a vital artery for oil to the world, has been severely disrupted by combat.
Volatile oil prices drive up the price of nearly everything. That means higher inflation. And higher inflation will just make it less likely for the Fed to cut rates anytime soon. To boil it down, “as long as oil is high and inflation continues to stay elevated, central banks will not be rushing to cut rates, and that’s bad for gold,” said Bob Haberkorn, senior market strategist at RJO Futures.
Expectations for a Rate Cut Gone
At the beginning of 2026, the markets were pricing cuts by the Fed several times throughout the year. That picture has completely changed.
Now traders see only one cut in view, in December. Even a September reduction has been taken off the table. Gold does not bear interest, so when rates remain high, investors tend to shift their money toward assets that do generate returns. That is a big reason why gold has been pressured this week. Despite the conflict and uncertainty across the globe, gold failed to hold above $5,000 this past week. JP Morgan has set a year-end target of $6,300 an ounce for gold. Those targets were established by banks before the Iran war started.
FAQs
- Why did gold fall this week?
The Fed held rates steady and warned that oil's climb higher will help inflation move upward, making rate cuts less likely.
- Where is gold trading now?
It stabilised at around $4,835 an ounce on Thursday after hitting $4,818 the previous session.
- What did the Fed decide in its March meeting?
It left rates at 3.50%–3.75% and now anticipates just one rate cut in 2026, probably in December.
- How does the Iran war affect the prices of gold?
It raises oil prices, which raises inflation and keeps interest rates higher, bad for gold.
- What do big banks predict for gold?
JP Morgan is targeting $6,300 and Deutsche Bank target $6,000 by the end of the year, both predictions made before the Iran war broke out.
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