Gold Continues to Decline Globally Despite Fed Warnings on Inflation and Rising Unemployment

Gold prices continued to fall globally on Thursday, May 8, despite warnings from the U.S. Federal Reserve about the growing risks of rising inflation.

In the markets, gold futures dropped by 0.8%, reaching around $3,364.9 per ounce, after the precious metal had lost more than 1% of its value following the Fed’s decision to keep interest rates unchanged.

The U.S. central bank reported signs of increasing risks of rising unemployment and inflation in the near future. In this regard, Fed Chairman Jerome Powell explained that tariff rates had exceeded expectations, warning that if the large increases continue as announced, we may witness higher inflation and a decline in employment rates.

Powell emphasized in his statements that current economic conditions do not allow for a preemptive rate cut, stressing that political calls, including demands from the U.S. President to lower interest rates, do not influence the independence of the Fed’s decisions.