XAU/USD: Gold on the Run as Market Tremors Return

The precious metal extended its post-Fed rally on Thursday, but prices were muted in early Friday deals.

• Gold prices moved up on Thursday, hitting a session high of $2,004 per troy ounce. The rally was underpinned by a falling dollar and a drop in Treasury yields right after the Federal Reserve hiked interest rates by 25 bps and vowed to keep them steady throughout the year.
• Bullion traders were encouraged to grab more of the shiny metal on the expectation that the US central bank is nearing a pause in its monetary tightening cycle. The move will see the rate-hike clip come to a halt, allowing market participants to catch their breath (hang in there, banks.)
• Analysts are forecasting that gold prices might fare well in a monthslong period of no interest rate increases. The aggressive rate-hike campaign from the Fed has pushed borrowing costs to a high last seen in 2007. On Monday, gold hit a one-year high, breaching $2,010 per ounce.