On Wednesday, gold prices (XAU/USD) surged to $2,440 and maintained their gains following the Federal Reserve’s highly anticipated decision to keep the policy rate unchanged.
The US Federal Reserve has opted to hold the policy rate steady at 5.25%-5.5% for the eighth consecutive meeting. Following this announcement, Treasury yields for 2-year, 5-year, and 10-year notes remained stable at 4.36%, 4.02%, and 4.11%, respectively. Investors are now closely watching Federal Reserve Chair Jerome Powell’s press conference for additional insights.
The Fed‘s statement showed little change in language, reaffirming that inflation remains somewhat elevated. However, there was no clear guidance provided for the September meeting, which could be interpreted as hawkish. The bank emphasized its data-dependent approach going forward.
