After gold held critical support at $4,000 and gapped higher at the start of the week, fortunes have once again shifted in the gold market as prices look to end the shortened trading week back where they were last Friday.
Following its Wednesday meeting, the Federal Reserve said the economy is “expanding at a solid pace despite elevated uncertainty,” pointing to the war in Iran. The Fed, in announcing the unanimous decision to hold interest rates steady, cited strong productivity and job growth, as well as minor changes in the unemployment rate.
The gold market continues to face solid selling pressure as the Federal Reserve Bank of Philadelphia reported a strong rebound in its manufacturing sector.
Gold prices coming off their recent lows on Thursday morning following the release of steady labor market data after the number of Americans filing new claims for unemployment benefits were in line with economists' forecasts.
Asian markets were broadly steady on Thursday as investors looked past the formal signing of a US-Iran interim peace agreement and focused instead on what comes next for oil, rates and risk appetite. The deal extends an April ceasefire by 60 days and aims to create room for a final truce, but it has not removed the political risk around enforcement.
The Iran conflict that began on February 27, 2026, provided what analysts called a "real-time stress test" for the safe-haven claims of both gold and Bitcoin — and the results were not what the crypto community was hoping for. In the first 48 hours of the conflict, gold surged 5.2%.
Gold rose in early Asian trade after the Fed left rates unchanged overnight.
The gold market is trying to find its footing after the Federal Reserve left interest rates unchanged but signaled a hawkish tilt, showing support for at least one potential rate hike by the end of the year.
The gold market continues to regain lost ground, and although the precious metal isn't out of danger just yet, current prices still represent an attractive entry point for investors looking to build a position, according to Wells Fargo.
The Federal Reserve announced on Wednesday that the first Federal Open Market Committee (FOMC) vote under new chair Kevin Warsh was unanimous in favor of a rate hold, as expected by the market consensus, while the latest economic projections showed nearly half of policymakers believe a rate hike will be warranted in 2026.
Even when real yields decline and the dollar weakens, gold prices could struggle to catch a bid as strong equity markets will continue to draw investors to risk assets, according to commodity analysts at Société Générale.The French banking giant cautioned that gold investors may be in for an extended period of muted ETF flows combined with a pause in central bank purchases.
Hopes for a stabilizing U.S. housing market were bolstered after the number of potential home buyers rose beyond expectations last month, according to the latest data from the National Association of Realtors (NAR).The U.S. pending home sales index rose 3.8% in May, the NAR announced on Wednesday. The data was better than forecasts, as economists expected only a 0.8% rise.