Global gold prices remained under pressure during Wednesday’s trading session (October 28, 2026) in New York, following the Federal Reserve’s decision to keep its benchmark interest rate unchanged—without providing clear guidance on a potential hike in December.
Spot gold fell 0.6% to US$4,034.18 per troy ounce as of 2:22 p.m. New York time, having previously hovered around the US$4,030 level. The Federal Open Market Committee’s (FOMC) decision to maintain rates within the 3.75%–4.00% range was in line with market expectations, yet it failed to provide any upward momentum for the precious metal. Yields on U.S. government bonds remained relatively stable following the announcement, while the Bloomberg U.S. Dollar Index saw a slight gain.
The Fed’s decision was reached via a vote, with 10 members in favor and two opposed. Fed Governor Lisa Cook and Federal Reserve Bank of Cleveland President Beth Hammack voted for a 25-basis-point interest rate hike, signaling that some support for further monetary tightening persists within the central bank. In its official statement, the FOMC reaffirmed its commitment to bringing inflation down to its 2% target, noting that future economic data would guide policy decisions. This stance has left investors without clarity regarding the direction of interest rates in December. Amid persistent energy price pressures and elevated inflation, the prospect of further policy tightening continues to weigh on the appeal of gold, which is a non-interest-bearing asset.
The weakness in gold was mirrored by declines in other precious metals. Silver dropped 1.6% to US$53.54 per troy ounce, while platinum and palladium also saw their prices fall. Market participants are now closely monitoring remarks from Fed Chair Kevin Warsh, as well as incoming U.S. economic indicators, to gauge the likelihood of an interest rate adjustment at the next meeting. Although the decision to maintain interest rates could, in theory, reduce pressure on gold, the Federal Reserve’s emphasis on price stability—along with the fact that two members favored a rate hike—suggests that the risk of a tight monetary policy remains significant. Consequently, gold is likely to remain volatile until the market gains greater clarity regarding the inflation outlook and the future direction of U.S. interest rate policy.