- The FOMC voted unanimously to raise the benchmark federal funds rate by a quarter percentage point, the first hike in three years, and signaled another increase is likely before year-end.
- The Fed's median outlook for rates at end-2026 moved up to 4.1% from 3.8%, tilting the policy path hawkish.
- Gold fell 2% over the three sessions before the decision and traded around $4,270 an ounce, then rebounded to about $4,288 an ounce in Asian trading Thursday after diving as much as 2.7% to $4,234.
- Investment banks maintained a positive long-term gold outlook, pointing to central bank purchases and demand from China and India as structural supports.
Quotes
“too high for too long”
“Investment banks say central bank purchases and demand from China and India should support bullion prices”