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Gold and silver futures retreated Thursday morning, one session after the Federal Reserve left its benchmark interest rate unchanged but signaled that additional hikes remain ahead.
The twin decline in precious metals reflected markets repricing the durability of the high-rate environment that the central bank indicated it intends to sustain.
The Fed's Hold-and-Signal Calculus The Federal Reserve's decision to keep rates on hold was accompanied by guidance pointing toward further tightening — a combination that, in market terms, delivers much of the same impact as an outright hike.
By leaving the door open to more increases, the Fed reinforced that borrowing costs are unlikely to ease soon. For traders in rate-sensitive assets, that message proved enough to prompt selling.
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