Spot gold prices are holding steady at $3,366.04 per ounce in Thursday trading, consolidating recent gains as the Federal Reserve once again left its benchmark interest rate unchanged at 4.25%-4.5%. The Fed’s decision, driven by persistent uncertainty over inflation and the economic outlook-exacerbated by new tariffs and concerns about stagflation-has reinforced gold’s appeal as a safe-haven asset. While the Fed signaled no urgency to cut rates, citing both solid labor market conditions and heightened risks of inflation and unemployment, investors continue to seek refuge in physical gold, which remains up nearly 28% year-to-date.
Silver is also trading higher, with spot prices last seen at $32.70 per ounce, supported by ongoing structural deficits in the physical market and renewed investment demand. However, silver continues to underperform gold, as reflected in the elevated gold-to-silver ratio, with central banks showing a clear preference for gold in their reserves. The Fed’s patient, data-dependent stance has left precious metals markets in a holding pattern, but persistent economic and geopolitical uncertainties are likely to keep both gold and silver well-supported in the near term.
