Gold rebounds as dip-buyers step in after slide

Bullion rose by as much as 1%, recovering part of its recent losses in what marked its longest stretch of declines since late 2024, News.Az reports, citing Bloomberg.

The rebound came after the Federal Reserve kept interest rates unchanged at its latest meeting and signaled only one potential rate cut this year. Chair Jerome Powell said any reduction would depend on clear progress in lowering inflation, while officials noted that the ongoing Middle East conflict has added uncertainty to the US economic outlook.

Oil prices also climbed on Thursday as Iran and Israel continued to exchange strikes targeting key energy facilities in the Persian Gulf. Nearly three weeks into the conflict, rising crude and gas prices are fueling inflation concerns, reducing the likelihood of interest rate cuts by the Fed and other central banks. This environment typically pressures gold, which does not offer interest returns. A stronger US dollar has also weighed on commodities priced in the currency.

Despite recent losses, gold remains up about 12% since the start of the year. However, its upward momentum has slowed as expectations for near-term rate cuts diminish and some investors liquidate positions to cover margin calls elsewhere. The metal reached a record high above $5,595 per ounce in late January but has since fallen nearly 9% since the outbreak of the conflict on February 28.