Gold Holds Firm Despite Fed Hike as Structural Forces Prevail

Gold shows resilience after the Fed raised rates by 25 basis points and signaled further tightening. Prices held at $4,386 per ounce, posting a nearly 1% weekly gain. Analysts cite deeper drivers including budget deficits, persistent inflation and geopolitical risks. Chris Vecchio of Tastylive stressed that investors focus on fiscal stability rather than the modest path to 4.1% by year-end. Ole Hansen of Saxo Bank noted gold shrugged off the decision as ETF holdings reached a seven-month high. Jeff Sarti of Morton Wealth said fiscal signals outweigh minor rate tweaks. Technically the metal tests the downtrend from $4,700, while the Swiss National Bank is expected to keep its rate at zero.