Gold drifts lower to near $5,000 as Fed rate-cut hopes fade
The post Gold drifts lower to near $5,000 as Fed rate-cut hopes fade appeared on BitcoinEthereumNews.com.
Gold price (XAU/USD) trades with mild losses near $5,000 during the early Asian session on Tuesday. The precious metal extends the decline as hopes fade for the US Federal Reserve (Fed) to lower interest rates this year. All eyes will be on the Fed interest rate decision later on Wednesday. Oil prices remained above $100 per barrel amid rising tensions in the Middle East as the US-Israeli war on Iran entered its third week. Fears that surging crude oil prices will lead to a rise in inflation have dampened expectations for interest rate cuts in the near term. This, in turn, could exert some selling pressure on a non-yielding asset. “With higher oil prices comes higher inflation. If we do have higher inflation, central banks are not going to be as motivated as they were six months ago to cut rates, which is a negative for gold prices,” said Bob Haberkorn, senior market strategist at RJO Futures. The US central bank is widely expected to hold the benchmark federal funds rate steady at its current range of 3.50%–3.75% during its upcoming March meeting on Wednesday. Analysts believe that the Fed will reduce the rates again in 2026. However, the number and size of these rate cuts remain to be seen. Traders in the fed funds futures market have taken even a September cut off the table and now see only one coming, in December, according to the CME FedWatch tool. Gold FAQs Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation…
Filed under: News - @ March 16, 2026 11:25 pm