Gold Prices Rise Modestly Amid Fed Decision, Oil Price Spike

Gold and silver prices rose modestly in late-afternoon U.S. trading on Wednesday, driven by a combination of factors.

The Federal Reserve's decision to keep interest rates unchanged was expected, but the market reaction was defensive: equities fell, the U.S. dollar held steady, oil prices surged, and Treasury yields remained elevated.

The precious metals benefited from equity weakness and geopolitical risks, which supported safe-haven demand. However, gains were tempered by expectations that the Fed may not be done tightening monetary policy.

Brent crude surged 7.3% to $88.09 per barrel, while West Texas Intermediate traded near $84.79, reviving the inflation-rate channel that has historically capped gold's upside.