{
    "success": true,
    "data": {
        "id": 1713502,
        "msgid": "burdened-by-the-feds-interest-rates-gold-prices-suffer-this-week-1777690323",
        "date": "2026-05-02 09:00:15",
        "title": "Burdened by the Fed's Interest Rates, Gold Prices Suffer This Week",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Finance",
        "summary": "Global gold prices have trended downwards this week, pressured by the US Federal Reserve's decision to hold interest rates steady amid rising inflation concerns, despite a slight recovery at the week's end. The Fed's split decision, the most divided since 1992, and persistent high oil prices above US$100 per barrel due to US-backed conflicts against Iran have heightened inflation fears, reducing gold's appeal as an investment. While short-term pressures persist, analysts foresee a potential long-term recovery, with Citi projecting prices stabilising around US$4,300 in the near term and reaching US$5,000 within 6-12 months as market confidence in safe-haven assets returns.",
        "content": "<p>Jakarta, CNBC Indonesia \u2014 Global gold prices have trended downwards\nthroughout this week, despite a turnaround in late trading, weighed down\nby the US Federal Reserve\u2019s (the Fed) decision to again hold its\nbenchmark interest rate steady.<\/p>\n<p>According to Refinitiv, the gold price in the final trading of the\nweek, Friday (1\/5\/2026), closed at US$4,613.02 per troy ounce. The price\nweakened by 0.17%. Over the past week, gold plunged 2.02%\npoint-to-point.<\/p>\n<p>The Fed did hold interest rates, but in its most divided decision\nsince 1992.<\/p>\n<p>The central bank highlighted growing concerns over inflation. Three\nofficials even rejected the statement because they did not want any\nsignal of a bias towards rate cuts.<\/p>\n<p>After the Federal Reserve\u2019s decision, market participants continue to\nbet that interest rates will not be cut this year or in the near future.\nInflation concerns have risen again as global oil prices remain above\nUS$100 per barrel due to US-backed conflicts against Iran.<\/p>\n<p>\u201cOnly Donald Trump and Iran can save the market, but neither side is\napproaching an agreement and oil prices reflect that. In this situation,\nthe outlook for gold does not look too bright,\u201d said market analyst at\nCity Index and FOREX.com, Fawad Razaqzada, quoted Saturday\n(2\/5\/2026).<\/p>\n<p>Inflation concerns are rising along with global oil prices that\nremain above US$100 per barrel due to the US-backed conflict against\nIran.<\/p>\n<p>From a fundamental economic perspective, gold\u2019s attractiveness is\nstill limited by the prospects of tight central bank interest rate\npolicies. US Personal Consumption Expenditures (PCE) data showed a 0.7%\nsurge last month, recording the fastest growth since mid-2022.<\/p>\n<p>This strengthens concerns that inflation will remain high amid\nuncertainty from the conflict in Iran, forcing the Fed and the Bank of\nEngland (BoE) to maintain interest rates at high levels or even tighten\nfurther if the situation worsens.<\/p>\n<p>Although gold serves as a hedge instrument, rising interest rates\ntend to reduce investor interest because they increase the opportunity\ncost compared to interest-yielding assets.<\/p>\n<p>Despite short-term selling pressure due to geopolitical uncertainty\nin the Middle East, analysts still see long-term recovery potential for\ngold as a safe-haven asset.<\/p>\n<p>Citi\u2019s projections show a fairly stable price target at US$4,300 in\nthe short term, with potential to reach US$5,000 within the next 6 to 12\nmonths as market confidence in safe-haven assets returns.<\/p>\n<p>Overall, the current dynamics indicate that although gold has\nrecorded a monthly decline of around 0.84%, price volatility remains\nhigh due to the tug-of-war between global inflation risks and\ngeopolitical tensions.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/burdened-by-the-feds-interest-rates-gold-prices-suffer-this-week-1777690323",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}