Gold Prices Fall Thursday Morning as Fed Warns of Rising Inflation Risks
Gold prices declined in early Thursday (March 19, 2026) trading, pressured by cautious market sentiment following the latest policy stance from the Federal Reserve. According to Bloomberg, as of 07:33 WIB, gold futures for April 2026 delivery on the Commodity Exchange slipped to US$4,843.20 per troy ounce, down 1.08% from the previous session’s level of US$4,896.20 per troy ounce.
The drop in gold prices came after the Federal Reserve decided to hold its benchmark interest rate steady. Fed Chair Jerome Powell also warned that rising energy prices could push overall inflation higher, adding pressure to the precious metal.
Bloomberg reported that Fed officials maintained interest rates during the March 2026 policy meeting and projected only one rate cut this year, citing increased uncertainty driven by ongoing geopolitical tensions in the Middle East.
The Fed emphasized that it continues to monitor risks on both sides of its dual mandate—maximizing employment while maintaining price stability.
“Powell slightly walked back his earlier tone, which turned out to be less aggressive than feared, but still focused on the dual mandate that keeps rates higher for longer,” said Nicky Shiels, Head of Metals Strategy at MKS PAMP SA, as quoted by Bloomberg.
She added that the earlier sharp decline in gold prices had already weakened market confidence, making it harder for prices to recover in the short term.