19.03.202606:57:28UTC+00Gold Hits Six-Week Low

Gold fell to around $4,750 per ounce on Thursday, extending its decline for a seventh consecutive session to reach its lowest level in nearly six weeks, as the Federal Reserve’s hawkish stance undermined the appeal of the non-yielding asset. As expected, the Fed left interest rates unchanged, citing uncertainty over the economic impact of the conflict involving Iran and emphasizing persistent upside risks to inflation. Officials indicated that rate cuts will remain on hold until there is clearer evidence that price pressures are easing, though they still anticipate one reduction later this year.

At the same time, geopolitical tensions intensified after Iran launched missile strikes on a site in Qatar that hosts the world’s largest LNG facility, in retaliation for an Israeli attack on Iran’s South Pars gas field. This bolstered safe-haven demand for gold but also drove oil prices higher. Gold remains up roughly 12% year-to-date; however, its momentum has cooled as expectations for imminent rate cuts diminish and some investors liquidate positions to meet margin calls.