Gold Erases Losses After Fed Cuts Interest Rates With Dissent

Gold erased losses after the Federal Reserve delivered an expected interest-rate cut and maintained its outlook for just one cut in 2026.

The Federal Open Market Committee voted 9-3 Wednesday to lower the benchmark federal funds rate to a range of 3.5%-3.75%. It also subtly altered the wording of its statement suggesting greater uncertainty about when it might cut rates again. Bond yields and the dollar pushed lower after the rate decision, helping lifting bullion by as much as 0.3%.

The dissents and the rate projections highlight divisions among policymakers that have emerged over whether weakness in the labor market or stubborn inflation represent the larger danger to the US economy.

In their new economic forecasts officials’ median projections pointed to one cut next year, and one in 2027. The rate outlook remained deeply divided, however. Seven officials indicated they favored holding rates steady for all of 2026, while eight signaled support for at least two.

Gold traders will now parse comments from Fed Chair Jerome Powell, especially what he’ll say about the direction of future monetary policy and economic projections, at his press conference at 2:30 p.m. Wednesday.  

Spot gold rose 0.2% to $4,215.10 an ounce as of 2:16 p.m. in New York. Silver was up 0.4%. Platinum and palladium fell. The Bloomberg Dollar Spot Index fell 0.3%.