Gold prices surged above $2,200 an ounce on Thursday, reaching unprecedented highs as the US Federal Reserve maintained its stance on potential interest rate cuts for the year, albeit with a slight adjustment for 2025. The decision was in line with market expectations. However, the upcoming Bank of England's policy decision could introduce volatility into the market. If the Bank of England hints at raising interest rates or adopts a more hawkish tone, gold prices may face downward pressure, potentially revisiting the $2,180 mark. This scenario assumes that investors may pivot towards higher-yielding assets in response to a more aggressive monetary policy stance. Nevertheless, the complex interplay of central bank policies, geopolitical tensions, and market sentiment will ultimately dictate the trajectory of gold prices in the coming days.
Trade closed: target reached