Fed Split Sends Gold Prices Rebounding After Sub-$4,000 Dip

Gold prices rebounded on Wednesday after sinking below $4,000 an ounce for the first time since mid-July. The Comex most-active August contract slid as low as $3,993.80 before rallying to $4,080.80, a 1% gain from Tuesday's settlement.

Silver prices surged even higher, jumping 2.2% to $58.78 an ounce in the September contract and 2.5% in spot silver.

The Federal Reserve kept interest rates unchanged at its latest meeting, with a 9-3 vote showing the committee's split on monetary policy. Cleveland Fed president Beth Hammack, Minneapolis' Neel Kashkari, and Dallas' Lorie Logan all preferred an immediate quarter-point increase.

Market-implied odds of a hike were around 38% going into the meeting, despite economists surveyed by Bloomberg expecting no change. Chair Kevin Warsh's abolition of forward guidance has made every meeting a 'live event', investors said.