Gold Rises as Fed Keeps Interest Rates Unchanged Amid Inflation Concerns

The price of gold rose today after the US Federal Reserve kept interest rates unchanged despite concerns about rising inflationary risks.

The Fed voted nine to three in favor of holding rates, with some policymakers signaling that higher borrowing costs may be needed later to curb resurgent price pressures.

Fed chairman Kevin Warsh emphasized that the decision was not a sign of inertia at the US central bank and that interest rates could be part of the solution if inflation remains elevated.

Nicky Shiels, head of research and metals strategy at MKS PAMP, noted that gold has held near the key support level of $4,000 an ounce since late June and that conviction is growing for a larger re-engagement in gold.