Gold and Silver Fall as the Fed Holds Rates Steady
Gold and silver extended their declines, with gold closing lower for the fifth time in the past six sessions, while silver fell for a sixth straight session. Both front-month contracts had largely settled before the Federal Reserve announced its decision to keep rates unchanged, but they slipped slightly further after the policy statement was released at 2:00 p.m. New York time.
In its guidance, the Fed added a new sentence noting that the economic implications of the Middle East conflict are “uncertain.” The language reinforced the central bank’s cautious stance as officials wait for clearer evidence on how the war may affect inflation and growth.
At the close, front-month gold dropped 2.2% to $4,889.90 per ounce, while front-month silver declined 2.9% to $77.238 per ounce.
Even though geopolitical conflict typically supports safe-haven demand, both metals remain pressured by the combination of interest rates staying elevated and a firmer dollar/steadier yields, which increases the opportunity cost of holding non-yielding precious metals.
Source : Newsmaker.id
