Gold, silver prices fall after US Fed holds rates steady
What's the story
Gold and silver prices have witnessed a decline after the US Federal Reserve's decision to keep interest rates unchanged. The Fed's pause was widely anticipated, but some policymakers remain concerned about inflation and have hinted at potential future rate hikes before easing up later. This outlook has made holding gold and silver less appealing, resulting in lower prices as the US dollar strengthened and US Treasury yields rose.
Price drop
Gold and silver prices on Thursday
Following the Federal Reserve's decision to keep interest rates steady at 3.5%-3.75% for the fourth consecutive meeting, gold and silver prices have taken a hit. Gold fell 0.94% to $4,340.4 per ounce while silver dropped 1.74% to $69.53 per ounce on Thursday. The Fed's unanimous vote was its first since June last year and under new Chair Kevin Warsh's leadership.
Market pressures
Geopolitical tensions in West Asia provide some support to bullion
The bullion market is also facing pressure from a stronger US dollar and rising Treasury yields, as traders adjust their positions in response to the Fed's guidance. However, ongoing geopolitical tensions in West Asia are preventing further losses for gold and silver prices. Investors are keeping a close eye on developments regarding the US-Iran ceasefire monitoring arrangement amid these tensions.