Gold prices stabilised on Wednesday, 15 July 2026, after a sharp rally in the previous session, as comments from former Federal Reserve official Kevin Warsh tempered market expectations for aggressive interest rate cuts. Spot gold traded near $2,420 per ounce, having surged 1.8% on Tuesday after US consumer price index data came in softer than forecast, raising hopes that the Fed could ease monetary policy sooner than previously anticipated.
However, Warsh, a former Fed governor and potential candidate for future leadership, cautioned that markets were 'overpricing the speed and depth' of potential rate reductions. Speaking at a financial conference in New York, he argued that underlying inflation pressures remained sticky and that the Fed would need to see a sustained period of weaker data before committing to a cutting cycle. His remarks prompted a slight pullback in gold from intraday highs, though the metal held onto most of its gains.
The FTSE 100 edged 0.2% lower to 8,215 points, with mining stocks such as Fresnillo and Anglo American giving back some of Tuesday's gains as gold's momentum faded. The pound strengthened modestly against the dollar, trading at $1.3120, which also capped the upside for dollar-denominated gold in sterling terms. UK investors have increasingly turned to gold as a hedge against geopolitical uncertainty and persistent inflation, with the metal up around 14% year-to-date.
Analysts at Capital Economics noted that the market's focus remains on the Fed's next move, with rate expectations driving short-term gold price action. 'The CPI data was a clear positive for gold, but Warsh's comments serve as a reminder that the path to lower rates is not guaranteed,' said a senior commodities strategist. 'For UK pension holders with exposure to gold via exchange-traded funds or mining equities, this means continued choppiness as each data point is dissected.'
The broader precious metals sector saw mixed trading, with silver slipping 0.3% to $31.10 per ounce, while platinum edged higher. UK-listed gold miners such as Centamin and Hochschild Mining saw modest declines of around 1%, reflecting profit-taking after Tuesday's rally. The yield on the 10-year US Treasury note, which moves inversely to gold, rose slightly to 4.12% following Warsh's remarks.