Gold Surges Past $4100 as Fed Keeps Interest Rates Unchanged

Gold prices have risen after the US Federal Reserve decided to keep interest rates unchanged. The price of gold increased by 0.8% and exceeded $4,100 per ounce.

The decision was made despite concerns about rising inflation due to tensions in the Middle East. Bloomberg reports that since the start of the war between the U.S. and Iran more than five months ago, gold has fallen by over 20%. However, as energy prices continue to rise, sustaining inflationary pressure and increasing the likelihood of prolonged high interest rates.

Fed Chairman Kevin Warsh emphasized that the decision to keep rates unchanged does not mean the regulator is inactive. He noted that if inflation continues to be elevated over the forecast period, interest rates could very well be part of that decision.