US Fed meeting 2026: Gold dips, rates held steady

Gold slips in Delhi on profit booking

Gold prices fell in the national capital on Wednesday as traders booked profits ahead of the US Federal Reserve’s rate decision. As per the All India Sarafa Association, gold declined by Rs 1,500 to Rs 1.52 lakh per 10 grams. The move came as crude oil prices rose amid tensions in West Asia, a development that bullion traders linked to renewed inflation concerns. Higher energy costs can feed into inflation expectations, which tends to make markets more sensitive to central bank messaging. The fall also followed a higher closing level in the previous session, indicating that part of the move was a pullback rather than a fresh trend. The broader market focus remained on whether the Fed would signal prolonged restrictive policy.

99.9% purity gold: latest price and previous close

The report also detailed prices for 99.9% purity gold, which declined by Rs 1,500, or 1%, to Rs 1,52,800 per 10 grams (inclusive of all taxes). In the prior session, the same purity gold had settled at Rs 1,54,300 per 10 grams. This places the day’s move clearly in the context of a one-session decline rather than a multi-day slide. The cited reason was profit booking, with traders adjusting positions ahead of a key macro event. The market narrative also tied the move to crude-led inflation risks, which can influence expectations for interest rates and real yields.

Silver edges higher despite cautious mood

Silver moved in the opposite direction, posting a modest gain even as gold softened. Silver rose by Rs 500 to Rs 2,44,500 per kilogram (inclusive of all taxes), up from Tuesday’s closing level of Rs 2,44,000 per kg, according to the All India Sarafa Association. The increase was small but notable given the cautious positioning ahead of the Fed. With both metals often reacting to rates, inflation expectations, and risk sentiment, the divergence suggested different positioning in the two markets. The report did not attribute silver’s rise to a specific driver beyond the broader context of the Fed decision.

Why crude oil mattered to bullion traders

Bullion traders cited higher energy costs tied to tensions in West Asia as a key factor shaping sentiment. Rising crude prices can increase input costs across the economy and keep inflation elevated. That, in turn, can pressure central banks to stay restrictive for longer, a dynamic traders were watching ahead of the Fed announcement. The report explicitly noted concerns that central banks could remain restrictive if inflation stays high. This link between geopolitics, energy prices, and inflation expectations was central to the day’s narrative in precious metals.

Fed holds rates steady for the second time

The US Federal Reserve kept its key interest rate unchanged for the second time, in line with expectations. The target range for the federal funds rate was held at 3.50% to 3.75%. The broader context provided was that, at its last meeting, the Fed also kept rates steady in the same range. Before that, it had delivered three consecutive rate cuts of 0.25% each, aimed at preventing a softening labour market from slipping into higher unemployment. The decision to hold steady reinforced the market’s sense that the Fed is balancing inflation risks against signs of moderating economic momentum.

Split vote details: near-unanimous decision

The update described the decision as near-unanimous. Jerome Powell and ten other members voted to maintain the interest rate, while Stephen I. Miran voted against the action. Miran preferred lowering the target range for the federal funds rate by 1/4 percentage point. The presence of a dissent highlights differences within the committee about the timing and conditions for future easing. Still, the overall outcome remained a hold, matching market expectations described in the coverage.

Inflation outlook revised higher to 2.7% for end-2026

A key update from the Fed meeting was an upward revision to the core inflation outlook. Officials revised core inflation expectations to 2.7% by the end of 2026, up from the 2.5% forecast in December. The Fed statement also said inflation has made further progress toward the Committee’s 2% objective but remains “somewhat elevated.” Powell added that near-term inflation expectations have risen in recent weeks. He also said the main thing the Fed is looking for is lowering goods inflation, and that without progress on inflation, rate cuts would not follow.

GDP projection nudged up; Powell cites productivity

The Fed raised the median GDP 2026 projection to 2.4% from 2.3%. Powell linked the upward revision to confidence in productivity. While the article did not give a broader set of forecast details, the change was presented as an incremental upgrade rather than a shift in the overall outlook. Together with the higher inflation projection, the update reflected a policy environment where growth is not collapsing but inflation risks remain a constraint on easing.

Key numbers at a glance

What markets are watching after the decision

The coverage repeatedly connected metals pricing and broader market positioning to inflation risk from oil and the Fed’s stance. Powell’s comments emphasised that the Fed wants to see progress, particularly in goods-price pressures, before cutting rates. The Fed also referenced uncertainty around developments in the Middle East and their implications for the US economy. For Indian bullion markets, the same global inputs remain central: crude prices, inflation expectations, and signals about how long policy stays restrictive. With the Fed holding rates steady and lifting the core inflation projection, the near-term focus stays on incoming inflation data and any further changes to the Fed’s projections.

Conclusion

Gold in Delhi slipped to Rs 1.52 lakh per 10 grams while silver edged higher ahead of the Fed decision. The Fed held rates at 3.50% to 3.75% and raised its end-2026 core inflation projection to 2.7%. Powell’s remarks underscored that rate cuts depend on visible inflation progress, with goods-price pressures a key area of focus. Markets will continue to track oil-driven inflation risks and future Fed communication for signals on the next policy move.