(Kitco NewsWire) - Spot gold and silver prices are lower in late-afternoon U.S. trading Wednesday, after the Federal Reserve raised interest rates for the first time since 2023 and signaled that more tightening may be needed to contain inflation. At the time of writing, spot gold was trading near $4,261.80 an ounce, down 0.72%, while spot silver was trading at $62.82, down 1.16% on the session.
North American equity markets closed lower after Fed Chair Kevin Warsh’s press conference pushed yields and the dollar higher. The S&P 500 fell 33.92 points, or 0.4%, to 7,551.81, the Dow Jones Industrial Average dropped 631.21 points, or 1.2%, to 51,461.90, the Nasdaq Composite slipped 3.15 points, or less than 0.1%, to 25,978.42, and the Russell 2000 fell 11.47 points, or 0.4%, to 2,858.81. European markets finished higher before the Fed decision, with the STOXX Europe 600 up 0.46% to 637.09. London’s FTSE 100 rose 0.28% to 10,688.47, Germany’s DAX gained 0.61% to 25,558.88, France’s CAC 40 added 0.62% to 8,140.59, and Italy’s FTSE MIB climbed 0.80% to 51,969.12.
The latest positioning shifted back against precious metals after the Fed raised the target range for the federal funds rate by 25 basis points to 3.75% to 4.00% and the updated projections showed 16 of 18 officials saw at least one more hike by year-end. Warsh said inflation remains too high, and the market read the decision as more than a one-and-done response to oil-driven price pressure. The two-year Treasury yield rose to about 4.734%, the 10-year yield moved back to 5.00%, and the dollar index climbed to 100.25. Thursday’s jobless claims, Philadelphia Fed manufacturing index and housing starts now become the next checks on whether the economy is strong enough to absorb tighter policy. For gold, the message is rate-negative: the expected hike was priced, but the dot plot and Warsh’s tone kept the real-yield channel in control.
Precious metals surrendered the pre-Fed relief bounce. Gold fell back toward the $4,257.42 support area and remains below the $4,313.67 resistance level from the latest technical grid. Silver dropped below its $63.3172 pivot and is testing toward $62.1558 support after failing to hold above the $64.3018 resistance area. The late-session move shows that dollar and yield sensitivity still outweighs safe-haven demand when the Fed is actively tightening. Bulls now need a quick break in yields, or the path of least resistance remains toward lower support.
The Strait of Hormuz remains the main geopolitical channel into oil, inflation expectations and defensive demand, but Wednesday’s market impact came through a partial easing in crude rather than a fresh spike. Oil prices fell after Saudi Arabia offered additional crude cargoes through Oman, easing some concern over Middle East supply disruptions, while vessel passage through Hormuz remained constrained as regional attacks intensified. Brent crude settled down 2.7% at $105.83 a barrel, and WTI fell 3.2% to $102.43. For gold, the setup remains conflicted: lower oil reduces some immediate inflation pressure, but crude above $100 and constrained Gulf shipping keep the Fed focused on preventing energy inflation from spreading through the economy.
The key outside markets see Nymex WTI crude oil prices lower and trading around $102.43 a barrel, while Brent crude was near $105.83. The yield on the benchmark 10-year U.S. Treasury note is trading near 5.00%. The U.S. dollar index is firmer. (Kitco Global Index shows how much of today's gold move is the dollar versus the gold market itself.)
Technically, spot gold bulls' next upside price objective is to push prices back above the $4,313.67 resistance level, with a sustained move targeting $4,382.28 and then $4,510.93. Bears' next near-term downside price objective is a break below $4,257.42, with deeper downside targets at $4,253.63 and then $4,230.51. First resistance is seen at $4,313.67 and then at $4,382.28. First support is seen at $4,257.42 and then at $4,253.63.
Spot silver bulls’ next upside price objective is to drive prices back above $64.3018, with a move above that level targeting $65.297 and then $65.661. The next downside price objective for the bears is a break below $62.156, with deeper downside targets at $60.00. First resistance is seen at $64.3018 and then at $65.297. Next support is seen at $62.156 and then at $60.00.
See live precious metals prices for gold, silver, platinum and palladium — in USD, CAD and 12 more currencies.
