Gold Stagnates as Fed Signals Continued Inflation Fight

TD Securities anticipates gold will remain range-bound between $3,900 and $4,250 an ounce through the end of the year. Bart Melek, head of commodity strategy at the firm, noted that while the central bank's recent decision was less aggressive than anticipated, it stopped short of abandoning its tightening bias. Elevated long-term yields and higher carry costs continue to weigh on the metal, limiting prospects for a significant near-term rally.

Warsh emphasized that the committee is monitoring tightened financial and credit conditions, which are beginning to influence business and household capital allocations. Despite these pressures, Melek expects future rate hikes to remain modest, provided inflation expectations stay anchored. He maintains a bullish long-term outlook, suggesting that once the Fed shifts its focus toward its maximum employment mandate, gold will likely move back toward recent highs. Silver is expected to follow a similar pattern, remaining stuck in a range between $50 and $55.