How does the Fed's interest rate policy and rate cut expectations affect the price of gold?

The Fed's interest rate policy and rate cut expectations can have an impact on the price of gold. When the Fed raises interest rates, it makes bonds and other fixed-income investments more attractive, causing investors to shift their investments away from gold. This can lead to a decrease in the price of gold. However, the relationship between gold prices and interest rates is uncertain and unstable, as gold is traded on a global market subject to forces beyond the Fed's control. Therefore, the effect of Fed rate hikes or cuts on gold prices is not always consistent.