Gold Prices Surge After Fed Holds Interest Rates Steady

The Federal Reserve held interest rates steady at 3.50%-3.75% in its latest decision, sending gold prices higher as investors reassessed the Fed's forward guidance.

Gold (XAU/USD) gained ground on Thursday after the FOMC vote to keep rates unchanged, with markets pleased at the lack of an immediate rate hike.

Central banks have continued to buy gold in recent years, with China leading the charge. A survey by the World Gold Council found that 89% of central bank reserve managers believe global official gold holdings will increase over the next 12 months.

Despite the Fed's decision to hold rates steady, Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lorie Logan all voted against the rate hold in favor of a 25-basis point increase, signaling that the fight against inflation continues.