Gold prices fluctuate after the Federal Reserve maintains rates while projecting inflation above 3% in its latest projections.
The Federal Reserve kept interest rates unchanged at 3.50% to 3.75% on Wednesday, aligning with market expectations. The decision followed the release of the Summary of Economic Projections, which indicated policymakers anticipate inflation remaining above the 3% threshold in the near term.
Prior to the announcement, gold (XAU/USD) had stabilized near $4,330, but volatility surged post-release. The metal traded within a tight range of $4,330 to $4,280 as investors digested the Fed’s hawkish tone despite the rate hold. Comparable periods saw similar reactions when the Fed signaled prolonged restrictive policy.
Markets reacted with heightened volatility, reflecting uncertainty over the Fed’s inflation outlook and future rate adjustments.