Gold Reclaims $5,000 Amid Fed Caution and Geopolitical Tensions
Gold surged past $5,000 an ounce, marking a 2% rebound on Wednesday as markets digested mixed signals from the Federal Reserve and unresolved US-Iran nuclear talks. The metal's recovery follows a volatile sell-off earlier this month that erased gains from its all-time high above $5,595.
Fed minutes revealed officials' reluctance to cut rates despite political pressure, strengthening the dollar after robust US industrial production data. Thin Lunar New Year trading in Asia saw spot gold rise 0.9% to $5,019, with US futures climbing 0.6% to $5,037.75.
Major banks including Goldman Sachs and Deutsche Bank anticipate renewed upward momentum for gold, citing persistent geopolitical risks and diverging central bank policies. The metal's traditional role as a hedge continues to attract buyers amid uncertain rate trajectories and Middle East tensions.
