Gold Surges as Silver Craters Amid Fed's Hawkish Hold

The US Federal Reserve's decision to maintain interest rates at 3.5-3.75 percent while signaling future hikes has led to a divergence in metals prices.

Gold, traditionally used as a risk hedge, rose from $4,042.23 before the announcement to $4,104.99 immediately after, driven by geopolitical tensions and inflation concerns.

Fed Chair Kevin Warsh emphasized price stability, stating 'We have begun a new chapter... This Fed will not waver.'

Silver, however, faced significant pressure due to higher real yields and weakening physical demand, with prices plummeting 49 percent from its January record of $121.67.