: Gold prices settle lower, edge up after the Fed statement

Gold futures settled with a loss on Wednesday, then moved a bit higher in the electronic trading shortly after the Federal Reserve announcement. The central bank agreed to leave its benchmark fed funds rate unchanged at 5.25% to 5.50%, while also keeping the option open for a further interest-rate hike. The Federal Open Market Committee decision, “albeit not raising rates, is a bit hawkish as they raised economic growth numbers,” Peter Spina, president of GoldSeek.com, told MarketWatch. “Strong labor and inflation data is going to support the higher-for-longer; mantra the Fed is communicating,” he said. “Although this would be seen as negative for gold, the FOMC also mentioned tighter financial conditions as a risk.” December gold GCZ23 was at $1,988.90 an ounce shortly after the Fed announcement. That follows a settlement at $1,987.50 an ounce, down $6.80, or 0.3%, for Wednesday’s session.

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