Gold Prices Decline Amid Fed's Interest Rate Decision

Gold prices experienced a significant drop on Thursday, following the Federal Reserve's announcement to maintain current interest rates. This decision, coupled with expressed concerns over inflation and unemployment, has led to decreased enthusiasm for the precious metal as a safe haven.

Market Reaction to Fed's Announcement

At 12:59 pm ET, gold was down by 1.66%, trading at $3,309.64 per ounce. Meanwhile, silver remained steady at $32.50 per ounce, platinum saw a slight increase of 0.45% to $983.92 per ounce, and palladium improved by 0.87% to $965.11 per ounce a minute later.

Fed Chair Powell's Remarks

Fed Chair Powell emphasized the central bank's cautious approach towards rate adjustments, ruling out preventive rate cuts to mitigate potential economic impacts from trade tariffs. This stance has further influenced market sentiments towards gold and other precious metals.