Gold: Fed Hold Shifts Focus to PCE Inflation Data

Gold prices swung higher after the Federal Reserve left interest rates unchanged, but the initial rally faded as investors digested Fed Chair Kevin Warsh’s message about keeping inflation on track to the Fed’s long-standing 2% target. Benchmark Treasury yields and the U.S. Dollar Index both recovered from immediate post-decision moves; the dollar was last around 100.9. CME FedWatch showed markets pricing roughly a 64% probability of a September rate hike, down from about 81% before the decision. Renewed U.S.-Iran tensions also supported commodities. Traders now await Thursday’s U.S. Personal Consumption Expenditures (PCE) data, along with central-bank decisions later this week from the Bank of England and Bank of Japan.