Gold Holds as Traders Weigh Inflation Warning, Middle East Risks

Gold traded little changed as investors weighed rising geopolitical risks in the Middle East against an inflation warning from the Federal Reserve that raises the possibility of fewer US rate cuts.

Bullion hovered near $3,369 an ounce as trading wound down in London, with activity muted because US markets are closed for a public holiday.

The Fed left rates unchanged Wednesday, and policymakers penciled in two cuts by year’s end. But Chair Jerome Powell said the central bank’s market committee continued to expect tariffs to work their way into price gains.

Fed policymakers also released new economic forecasts — their ...