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[BUSINESS] · United States, Saudi Arabia, Japan, Türkiye, Vietnam · 37 sources

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Precious metals rebound following Federal Reserve interest rate hike

Precious metal markets have experienced significant volatility following the Federal Reserve's decision to raise interest rates by 25 basis points, bringing the target range to 3.75%-4.00%. While the rate hike initially pressured bullion, gold prices recovered to trade near $4,370-$4,400 per ounce, supported by declining oil prices and retreating US Treasury yields.

Silver has also seen substantial movement, with spot prices rising toward the $66 per ounce mark. Analysts note that while higher interest rates typically increase the opportunity cost of holding non-yielding assets like gold, falling energy costs and geopolitical tensions in the Middle East are providing counter-balancing support. Specifically, Saudi Arabia's plans to restore its East-West oil pipeline capacity are being closely monitored.

In the long term, Goldman Sachs has maintained its 2027 gold price forecast of $5,400 per ounce, suggesting that while monetary tightening may slow the rally, it is unlikely to halt it. Meanwhile, the Bank of Japan is expected to raise interest rates to a 31-year high, adding to the complexity of the global central bank landscape.

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Bank of Japan · Donald Trump · Federal Reserve · Gold · Goldman Sachs · Kevin Warsh · Saudi Arabia · United States

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