Gold Drops 1% to $4,285 as Fed Holds Rates at 3.5%-3.75%
Updated
Updated · CNBC · Jun 17
Gold Drops 1% to $4,285 as Fed Holds Rates at 3.5%-3.75%
3 articles · Updated · CNBC · Jun 17
Summary
Spot gold fell 1.03% to $4,285.52 an ounce on Wednesday, while August U.S. gold futures lost 0.84% to $4,317.8 after the Fed’s first policy decision under Chair Kevin Warsh.
The Federal Open Market Committee kept the federal funds target range unchanged at 3.5% to 3.75%, signaling no immediate easing and prompting investors to reassess bullion’s appeal.
Fed officials said inflation still sits above their 2% goal, citing supply shocks and energy-driven price increases, and reiterated that the committee will deliver price stability.
The move underscores how gold remains highly sensitive to U.S. rate policy, especially as markets gauge whether Warsh’s first meetings will keep pressure on non-yielding assets.