- Spot gold prices dropped 1.5% after the US Fed held interest rates steady again
- Gold traded at $4,527.94 an ounce as of 2:15 p.m. EST amid elevated inflation concerns
- Fed kept rates at 3.5%-3.75% due to inflation linked to energy price spikes from Iran war
Spot Gold Prices plunged 1.5% after the US Federal Reserve decided to hold key interest rates steady for the third time.
As of 2:15 p.m. EST (11:46 p.m. IST), Gold traded 1.50% lower at $4,527.94 an ounce.
Fed has decided to hold rate steady in the 3.5%-3.75% range on elevated inflation triggered by spiking energy prices due to the Iran war.
Regarded as safe haven assets during times of uncertainty, gold and silver lost sheen due to progression of the middle east conflict in the face of a strengthening dollar and rising rising Treasury yields.
Gold has fallen nearly 15% ever since the Iran war began, even after brief bouts of recovery triggered by potential truce between America and Iran.
On February 27, 2026, a day before the conflict erupted in the Middle East spot gold surged near a one-month high, trading around $5,230–$5,280 per ounce.
Jerome Powell's Holds Rate For The Third Time
The US Federal Reserve has kept its key lending rates on hold, as the US-Iran war and resultant strain in energy supplies as sparked inflation concerns.
Accordingly, it has retained the benchmark lending rates, or the federal funds rate, in the range of 3.5%–3.75%.
"Inflation is elevated, in part reflecting the recent increase in global energy prices," said the statement issued by the Federal Open Market Committee (FOMC) following the conclusion of its two-day meeting on Wednesday.
Notably, the US consumer price index-based inflation jumped 3.3% in March—the highest in 22 months—and a sharp uptick as compared to February, when it stood at 2.4%.
The Fed decision was not unanimous, as eight members voted to keep the rates on hold, whereas four were in favour of cuts. While Chair Jerome Powell was among the eight officials who voted against the rate cut, four others, including FOMC members Philip Jefferson, Anna Paulson, Christopher J Waller and Stephen I Miran voted in favour of lowering the rates.
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