Gold reclaims $5,000 amid Fed rate uncertainty

Bullion rose as much as 0.9% on Thursday, extending gains for a second day as dip-buyers stepped in, News.Az reports, citing Bloomberg.

The market has remained volatile following a sharp selloff earlier in the month that pulled prices down from a record high above $5,595.

Minutes from the Fed’s Jan. 27–28 meeting, released Wednesday, showed policymakers were more cautious than expected about cutting interest rates. That stance could create tension with US President Donald Trump, who has expressed support for lower borrowing costs — typically a positive factor for non-yielding assets such as gold.

The US dollar held onto gains after rising earlier in the week on data pointing to a resilient American economy. Industrial production posted its strongest increase in nearly a year, while orders for core capital goods exceeded expectations in December. The Bloomberg Dollar Spot Index rose 0.5% on Wednesday and was little changed Thursday.

Major banks including BNP Paribas, Deutsche Bank and Goldman Sachs have projected that gold’s broader upward trend could resume, citing ongoing concerns over the Fed’s independence, a gradual shift away from sovereign currencies and bonds, and elevated geopolitical risks.

Investors are also monitoring developments in the Middle East, where US-Iran nuclear talks remain unresolved. Following negotiations in Geneva, a US official said Iran would return in two weeks with detailed proposals, while a report by Axios suggested any potential US military action could extend over several weeks.

Spot gold was up 0.8% at $5,017.88 an ounce as of mid-afternoon in Singapore. Silver gained 2.5% to $79.16, while platinum and palladium also advanced.