Fed Holds Interest Rates Steady, Gold Prices Surge

The US Federal Reserve (Fed) maintained its interest rate at 2.50-3.75 percent, causing gold prices to surge.

In a statement, the Fed noted that it decided to keep the target range for the federal funds rate steady in order to support its two core objectives.

Economic activity expanded at a solid pace despite high uncertainty stemming from conflicts in the Middle East, with employment gains running parallel to labor force growth and the unemployment rate changing little.

The Fed's decision led to an immediate impact on gold markets, resulting in a sharp rise in prices. Spot gold rose 1.2 percent to $4,080, while gram gold in the domestic market reached 6,215 Turkish Liras.