Gold surges after Fed holds as hawkish dissent fuels volatility

Gold price rises during the North American session after the Federal Reserve decided to hold rates unchanged, with a 9-3 vote split, as three members of the FOMC opted to increase the Fed funds rate by 25 basis points. The XAU/USD trades volatily at the time of writing within the $4,041-$4,100 range.

XAU/USD trades choppily after the Fed held rates, with three officials backing a 25-bps hike

The Fed noted that economic activity is expanding at a solid pace despite elevated uncertainty stemming from the Middle East conflict. The statement revealed that “Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little.”

Furthermore, the policy statement added that the Fed will deliver price stability.

Voting against the monetary policy decision were Cleveland Fed Beth Hammack, Minneapolis Fed Neel Kashkari, and Dallas Fed Lorie Logan, who preferred a 25-basis-point rate hike.

Up next, investors await the press conference of the Fed Chair Kevin Warsh.

XAU/USD Hourly chart