Spot gold traded in a narrow range, edging down 0.3% to $4,056.50 an ounce in early Asian session trading.
The precious metal is holding onto modest gains following the Federal Reserve’s decision to maintain its current interest rate policy, a move that came despite mounting inflationary risks linked to the ongoing war in the Middle East.
This development follows a period of volatility for gold, which had previously stabilized near $4,190 per ounce earlier in the week.
The central bank’s pause has left markets digesting the balance between monetary stability and geopolitical uncertainty.
While the Fed held steady, the backdrop of rising inflationary pressures from the conflict continues to weigh on sentiment, creating a choppy trading environment for bullion.
Prices have stabilized near the $4,060 level, reflecting a cautious stance among investors who are weighing the immediate impact of the rate decision against longer-term supply and demand risks.
This development follows a period of volatility for gold, which had previously stabilized near $4,190 per ounce earlier in the week.