29.10.202518:29:57UTC+00Gold Holds Gains After Fed

Gold experienced a significant increase of nearly 1%, surpassing $3,970 per ounce on Wednesday. This rise was attributed to bargain buying following a recent dip, as well as market reactions to the Federal Reserve's recent actions and projections. The Fed enacted a 25 basis point reduction, adjusting the target range to 3.75% to 4.00%. This move effectively reduced real short-term interest rates and lowered the opportunity cost associated with holding non-yielding gold. Meanwhile, the Fed's clearer indication that it will soon cease its balance sheet runoff has further supported liquidity. Continuous purchases by central banks and enduring concerns regarding currency debasement maintain long-term demand for gold, even though emerging reports of a potential U.S.–China trade agreement have somewhat decreased safe-haven investments. The metal is on track for its third consecutive monthly gain, boasting an approximate 50% increase so far this year.