Fed Holds Rates Steady, Precious Metals Prices Rise

The US Federal Reserve's decision to hold interest rates steady has led to a rise in precious metals prices. Gold and silver saw significant increases, with COMEX gold futures climbing 1.23% to $4,085.80 per ounce and COMEX silver futures increasing by 1.10% to $58.730 per ounce.

The move reflects shifting investor sentiment regarding US monetary policy and global geopolitical tensions. Investors are now awaiting the release of June's US inflation data, which will likely influence the central bank's next steps.

Geopolitical concerns, including an attack on a US-owned gas tanker in Egypt and rising tensions between the United States and Iran, have driven demand for safe-haven assets like gold and silver. The relationship between interest rates and precious metals is often inverse, with lower interest rates making non-yielding metals more attractive to investors.

The Fed's decision to maintain its benchmark interest rates has reduced the likelihood of a September rate hike, with data from the CME Group's FedWatch Tool indicating that the probability of a rate increase in September has fallen to approximately 57%.