Spot gold climbed over 1% as the Federal Reserve held rates steady at 3.5%-3.75%, weakening the dollar and Treasury yields.
Spot gold rose more than 1% in post-market trading Wednesday after the U.S. Federal Reserve left benchmark interest rates unchanged. The decision kept the federal funds rate in its 3.5%-3.75% target range, aligning with market expectations but pressuring the dollar and U.S. Treasury yields lower.
The Fed’s decision followed its latest policy meeting, where the committee maintained its current stance. Markets had largely priced in the hold, though the move reinforced expectations for a potential pause in future rate hikes. Gold, which is sensitive to interest rate shifts and dollar strength, benefited from the immediate reaction.
The initial rally in gold prices later pared some gains, reflecting mixed sentiment as traders assessed the Fed’s next steps. The central bank’s guidance on inflation and economic growth will remain key drivers for precious metals in the near term.