Gold futures surrendered earlier gains as investors recalibrated their portfolios in response to the Fed’s firm stance on monetary policy. Beyond the domestic shift in interest rates, market participants are keeping a cautious watch on escalating geopolitical tensions in the Middle East, which continue to weigh on investor sentiment.

Despite the prevailing gloom, BofA Securities offered a tactical bright spot for industrial metals. Analysts noted that copper demand stands to benefit from the rapid expansion of AI-driven data centers, suggesting that structural infrastructure needs may provide a floor for prices even as broader market volatility persists.