Gold drifted above $1,930 an ounce on Thursday after a brief slide below $1,900 in the previous session, as the Federal Reserve delivered a widely expected 25 basis point rate hike, easing a jittery market that has been anticipating the move for some time. The Fed also raised its projections for inflation and signaled six more hikes this year, taken by investors as an aggressive move towards keeping inflationary pressures in check. Meanwhile, the US central bank cut its GDP estimate for 2022 to a 2.8% expansion from the 4% it predicted in December, citing high prices and economic disruptions from the war in Ukraine. Investors are keeping an eye on the geopolitical situation after Ukrainian President Volodymyr Zelensky said negotiations were becoming “more realistic” and Russia said proposals under discussion were “close to an agreement,” although uncertainties remained.
