Gold falls 1% after Fed holds rates steady, signals rate hike this year

Gold prices fell about 1% after the US Federal Reserve held its policy rate steady at 3.50%-3.75% but signalled a potential rate hike later this year. Nine of the 19 Fed policymakers now expect a rate increase in 2025, pushing the December rate hike probability to 78% from 61% prior. Spot gold dropped to around $4,299 per ounce, while silver, platinum, and palladium also declined, supported by a stronger US dollar and hawkish commentary from new Fed Chair Kevin Warsh.