Gold Holds Near $4,050 as Warsh Eases 2026 Fed Rate-Hike Fears
Updated
Updated · Bloomberg · Jul 2
Gold Holds Near $4,050 as Warsh Eases 2026 Fed Rate-Hike Fears
3 articles · Updated · Bloomberg · Jul 2
Summary
Bullion traded around $4,050 an ounce after a 0.6% Wednesday gain, holding a rebound that ended two straight daily declines.
Kevin Warsh's remarks at an ECB forum in Portugal were less hawkish than feared, cooling bets the Federal Reserve will raise rates this year.
That shift mattered for gold because higher borrowing costs typically weigh on non-yielding metals, even as the Middle East war has lifted energy prices and inflation indicators.
The move extends a broader recovery from roughly $4,028 earlier Wednesday, when short covering had already helped gold rebound despite a stronger dollar and elevated Treasury yields.