- The FOMC raised the fed funds target range by 25 bps to 3.75%-4.00%, its first hike since 2023, with 16 of 18 officials projecting at least one more increase in 2026.
- December gold futures fell to $4,290 after the decision before recovering to $4,353; spot gold rebounded to $4,314 from a post-announcement low of $4,252.
- Two-year Treasury yields hit their highest since July 2024 and the dollar index rose above 100, weighing on non-yielding gold.
- Warsh said inflation remains too high and summer readings did not show meaningful improvement, reinforcing a hawkish reaction in markets.
- December gold traded near $4,302/oz after hours, down 0.7%, and December silver slipped to $63.42/oz, down 0.6%.
Quotes
“This summer's inflation data doesn't tell me that underlying trends have significantly improved”
“That is helping the dollar and will pressure metals in the short-term”
“The U.S. central bank's hike is hitting gold through a stronger dollar and higher real yields”