Fed Holds Rates Steady, Sparking Gold Price Rebound

Gold prices rebounded after the US Federal Reserve kept interest rates steady on Wednesday, providing temporary relief to investors.

The spot gold price climbed as much as 1.3% to almost $4,080 per ounce, reversing earlier losses ahead of the Fed's policy announcement.

Ahead of the meeting, markets had priced in a one-in-three chance of a rate increase, which could have negatively impacted gold prices.

However, the rate decision proved pivotal, with three policymakers voting in favor of an increase, highlighting growing divisions within the central bank.

Markets are still pricing in an 80% chance of a rate hike at the Fed's September meeting, according to CME Group's FedWatch Tool.