Gold Prices Stall as Fed's Hawkish Pause Wipes Out Recent Gains

The Federal Reserve's unexpected revision to its monetary policy, reducing the number of projected rate cuts for next year, sent shockwaves through the financial markets. Gold, which had been gaining value, saw its gains erased after the Fed's announcement. The new projections indicate the Fed's commitment to tackling high levels of inflation, with the intention to keep its terminal rate above 5% throughout 2024. The direction of gold next week will be influenced by pending legislation to fund the government, with a potential bullish undertone if an agreement is not reached.