- The gold market is holding solid gains even as the minutes of the Federal Reserve’s September monetary policy meeting shows that the central bank is committed to maintaining a “higher for longer” monetary policy stance.
“All participants agreed that policy should remain restrictive for some time until the Committee is confident that inflation is moving down sustainably toward its objective,” the minutes said. “Several participants commented that, with the policy rate likely at or near its peak, the focus of monetary policy decisions and communications should shift from how high to raise the policy rate to how long to hold the policy rate at restrictive levels.
The gold market continues to be well supported due to renewed safe-haven demand as investors remained focused on the growing chaos in the Middle East and the new war between Israel and Hamas.