Gold prices edge higher as the market digests the Fed decision and Waller's inflation remarks
智通财经2026/07/30 21:06- On Thursday during the Asian trading session, spot gold rose slightly by 0.5%, currently trading around $4,086/ounce; investors are digesting the latest policy decision by the US Federal Reserve and comments from its Chair Walsh on inflation.
- The US Federal Reserve announced on Wednesday that it will keep interest rates unchanged at 3.50% to 3.75%, in line with market expectations. However, three regional Fed Presidents cast dissenting votes, advocating for a 25 basis point rate hike, indicating rising divisions within the policy-making team. At the press conference, Walsh reiterated that the Fed "will never waver" in its commitment to bringing inflation back to the 2% target, but did not specify the direction of the next policy step.
- In terms of interest rate expectations, the CME FedWatch tool shows that the current market estimates a 57% probability of a rate hike in September, a clear decline from about 81% before the policy statement was released. Investors are waiting for the US June Personal Consumption Expenditures price index data to be published later in the day to further assess the inflation trend and policy outlook.
- On the geopolitical front, a British maritime security company reported that a drone attacked a liquefied natural gas storage vessel owned by a US company, docked at Egypt's Damietta port. Meanwhile, Trump has vowed to retaliate against Iran's overnight attack, indicating that the Middle East conflict is spreading beyond the main battlefield.
- The market is also focusing on this week's policy meetings of the Bank of England and the Bank of Japan, with both central banks expected to keep interest rates unchanged and issue warnings about the inflationary pressures brought by the Middle East war.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Deutsche Bank: After the three major central banks hiked rates simultaneously, the market may once again underestimate the terminal interest rate
Deutsche Bank points out that as central banks in the US, Europe, and Japan are tightening policy simultaneously, the market may still be underpricing the eventual terminal rates. With oil prices remaining high, inflation may spill over into core inflation and wages. Moreover, financial conditions have not tightened in tandem, which could weaken the effect of rate hikes. Citing the experience of 2022, Deutsche Bank notes that the market then expected a total of around 200 basis points of Fed rate hikes in the first year, but the final figure exceeded 400 basis points, illustrating that the market often underestimates the terminal rate.
Crypto prices
More
