{"id":949849,"date":"2026-10-28T21:42:15","date_gmt":"2026-10-28T21:42:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/949849\/"},"modified":"2026-10-28T21:42:15","modified_gmt":"2026-10-28T21:42:15","slug":"gold-price-drops-to-4035-oz-as-fed-votes-10-2-in-favor-of-rate-hold","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/949849\/","title":{"rendered":"Gold price\u00a0drops to $4,035\/oz as Fed votes\u00a010-2\u00a0in favor of rate hold"},"content":{"rendered":"

(Kitco News) \u2013 The Federal Reserve announced on Wednesday that the Federal Open Market Committee (FOMC) voted\u00a010-2\u00a0in favor of maintaining the policy rate unchanged, as expected by the market consensus.<\/p>\n

\u201cThe Committee decided to maintain the target range for the federal funds rate at 3-3\/4 to 4 percent, in support of the Federal Reserve’s dual mandate,\u201d the Federal Reserve said in its statement. \u201cThe Committee is continuing its policy of maintaining ample reserves in the banking system.\u201d<\/p>\n

\u201cEconomic activity is expanding at a strong pace,\u201d the statement read. \u201cWhile uncertainty remains elevated owing, in part, to geopolitical developments, domestic spending has been resilient. Productivity growth is strong, and capital investment is robust. Job gains have kept pace with the workforce, and the unemployment rate has changed little.\u201d<\/p>\n

The central bank warned, however, that inflation remains elevated. \u201cThe accumulation of more information will help the Committee determine the policy stance appropriate\u00a0to ensure a timely return of inflation to the Committee’s 2 percent goal,\u201d they said. \u201cThe Committee will deliver price stability.\u201d<\/p>\n

FOMC members Lisa Cook and Beth Hammack voted against the monetary policy action and the statement, both preferring to raise the target range for the federal funds rate by 25 basis points at Wednesday’s meeting.<\/p>\n

The Fed\u00a0statement did not include any guidance about future rate moves.<\/p>\n

Gold prices dropped in the wake of the announcement, with spot gold<\/a> last trading at $4,035.48 per ounce for a loss of 0.60% on the session.<\/p>\n

\"article<\/p>\n

Chris Zaccarelli, Chief Investment Officer of Northlight Asset Management, said the Fed left plenty of clues that they were planning to raise rates in December.\u00a0<\/p>\n

“As always, a lot can change in the data between now and then, but if it weren\u2019t so close to the midterm elections, they probably would have raised rates today, and now it\u2019s unlikely that anything will stop them from raising rates at the next meeting,” he said. “Next year, the picture is less clear. The futures are predicting two more rate hikes, and that makes sense if everything stays the same, but as we have learned over the past couple of years, things rarely do (e.g. tariffs, Iran war, etc).”\u00a0<\/p>\n

Zaccarelli expects the economy to sufffer as rates move higher and the AI buildout is impacted. “If we have a growth slowdown or recession in the next 12 months, then of course the Fed will react and we will see lower interest rates by the end of next year, but if the economy continues to be resilient despite all of the macroeconomic headwinds, then the Fed may end up raising even more than the 2 times that are currently priced in.”<\/p>\n

See live precious metals prices<\/a> for gold, silver, platinum and palladium \u2014 in USD, CAD and 12 more currencies.<\/p>\n

Disclaimer:\u00a0The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and\/ or damages arising from the use of this publication.<\/p>\n","protected":false},"excerpt":{"rendered":"(Kitco News) \u2013 The Federal Reserve announced on Wednesday that the Federal Open Market Committee (FOMC) voted\u00a010-2\u00a0in favor…\n","protected":false},"author":2,"featured_media":949850,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[7900,7888,45,49,48,7892,7894,7887,7897,7890,7889,7891,7898,3242,7899,2977,7879,7901,7884,7902,7886,7881,7882,7880,7883,714,7885,7896,7903,3243,7895,7893],"class_list":["post-949849","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-bank-forecasts","tag-bitcoin-news","tag-business","tag-ca","tag-canada","tag-central-banks","tag-charts","tag-crypto-news","tag-currency","tag-economic-reports","tag-ethereum-news","tag-forecasts","tag-global-economy","tag-gold","tag-international-policy","tag-interviews","tag-kitco-news","tag-market-nugget","tag-metals","tag-mining-minutes","tag-mining-news","tag-palladium","tag-pgm","tag-platinum","tag-platinum-group-metals","tag-politics","tag-precious-metals","tag-rare-earth-metals","tag-roundups","tag-silver","tag-tech-metals","tag-us-dollar"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/949849","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=949849"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/949849\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/949850"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=949849"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=949849"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=949849"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}