Gold Surges as Fed's Hawkish Hold Crushes Silver

The US Federal Reserve's decision to hold interest rates steady while signaling a future hike has led to a split in the metals market, with gold prices rising and silver prices falling.

Following the July 29 Federal Open Market Committee (FOMC) meeting, the central bank maintained the federal funds rate at 3.5-3.75 percent, but three regional presidents dissented from this decision, voting for an immediate 25-basis-point rate hike.

The vote marked the largest hawkish dissent bloc since September 2016, driving US 10-year real yields up to 2.4 percent.

Gold prices rose as investors looked past the higher real yields and prioritized its utility as a geopolitical safe haven and inflation hedge, reaching $4,104.99 immediately following the press conference.

Silver, on the other hand, faced the blunt force of higher real yields and fell 49 percent from its January nominal record of $121.67 per ounce to settle near $62.26 by early August.