Fed's Interest Rate Hold Sends Gold Prices Soaring

Gold prices rose after the US Federal Reserve kept interest rates unchanged despite rising inflationary risks. The Fed voted 9-3 in favor of holding rates, with some policymakers signaling that higher borrowing costs may be needed to curb resurgent price pressures.

The gold price climbed as much as 0.8% to touch $4,100 an ounce, having gained 0.9% on Wednesday. This move comes amid growing concerns over the war in the Middle East and its impact on inflation.

The Fed's decision was not unanimous, with three policymakers dissenting from the majority vote to keep interest rates on hold. This fractured vote suggests that some officials believe higher borrowing costs may be necessary to combat rising prices.