GLD is trading 4.5% down today following a hawkish Federal Reserve decision to hold interest rates at 3.50%–3.75% while signaling a significantly slower pace of easing than previously expected.
- The Fed projected zero to one rate cut for 2026, a shift driven by persistent inflation and February PPI data which rose 0.7% monthly (3.4% YoY), exceeding market forecasts.
- Spot gold prices retreated from the $4,830/oz level as the central bank's restrictive stance and a broader market sell-off outweighed geopolitical support from Middle East energy shocks.
- Investors are recalibrating expectations for a higher-for-longer rate environment, which has pressured non-yielding assets despite ongoing macro and geopolitical uncertainty.