Federal Reserve issues FOMC statement

AI desk brief

The Fed raised the federal funds target range by 25 bp to 3.75%-4.00% in a 12-0 vote, signaling continued tightening pressure that is typically bearish for gold and other precious metals through higher real yields and a firmer dollar. The Committee said inflation remains elevated and that the move should support a timelier return to its 2% goal.

The statement also noted solid activity, resilient domestic spending, strong productivity and robust capital investment, while acknowledging elevated uncertainty partly tied to geopolitical developments. Near term, the policy signal keeps the macro backdrop biased against metals unless markets quickly reprice a more dovish path ahead.