WASHINGTON (dpa-AFX) - Gold prices drifted lower on Thursday, with Middle East tensions and central bank decisions in focus.
Spot gold slid 0.1 percent to $3,365.85 per ounce in European trade while U.S. gold futures were down 0.6 percent at $3,387.67.
Bullion was coming under selling pressure after the U.S. Federal Reserve signaled a hawkish interest rate outlook.
At the end of a two-day policy meeting on Wednesday, the U.S. central bank left interest rates unchanged, forecast two more quarter-point cuts for the year, lowered the 2025 GDP growth forecast and raised the core inflation outlook to 3.1 percent.
Chair Jerome Powell signaled that officials would wait to see the impact of President Trump's tariffs on inflation before proceeding on rates.
'Ultimately, the cost of the tariff has to be paid, and some of it will fall on the end consumer. We know that because that's what businesses say. That's what the data say from the past,' Powell told a news conference.
Earlier today, the Swiss National Bank reduced its policy rate by a quarter-point, citing easing inflationary pressures.
Norges Bank cut its interest rate unexpectedly for the first time in five years and signaled further reduction in policy rate if the economy evolves as estimated.
The Bank of England is predicted to keep U.K. interest rates at 4.25 percent later today.
On the geopolitical front, tit-for-tat strikes between Israel and Iran continued for a seventh day, with explosions reported over Tel Aviv and Jerusalem as missiles were fired from Iran. Meanwhile, Israel has bombed a heavy water nuclear reactor in Iran.
Meanwhile, Iran flatly denied U.S. President Donald Trump's claim that it offered to send a delegation to the White House for nuclear talks.
In a scathing statement, Tehran's UN mission said it would never 'grovel at the gates' or negotiate 'under duress.'
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