(Kitco News) - The gold market continues to bounce off its lows and has pushed back to within striking distance of $3,400, as the Federal Reserve maintains its neutral monetary policy stance, giving no clear signal regarding the next potential rate cut.
As expected, the Federal Reserve left the federal funds rate unchanged in a range between 4.25% and 4.50% on Wednesday. At the same time, the central bank provided little forward guidance and downplayed the contraction in U.S. Gross Domestic Product (GDP) during the first quarter.
“Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid. Inflation remains somewhat elevated,” the central bank said in its monetary policy statement.
The gold market continues to experience solid selling pressure but remains off its lows in the initial reaction to the monetary policy decision. Spot gold last traded at $3,390.80 an ounce, down 1.21% on the day.
