Gold Falls Toward $4,000 After Fed Holds Rates, Offers No Clear Guidance

Gold prices declined toward $4,000 an ounce Thursday after the Federal Reserve held interest rates steady as expected but gave little signal on its next move. Spot gold fell nearly 1% to $4,027.08 an ounce, while U.S. gold futures slipped 0.3% to $4,040.62. The dollar index held its ground after modest losses the prior day. The Fed kept rates unchanged despite persistent inflation, with dissents from governor Lisa Cook and Cleveland Fed President Beth Hammack. It upgraded its activity assessment to "strong" from "solid" while noting inflation remains elevated. Chair Kevin Warsh gave no clear signal of a December hike, reiterating opposition to forward guidance. CME FedWatch shows markets pricing a 78% probability of a December rate hike, down from about 84% before the meeting. Investors await U.S. PCE inflation data later Thursday and the European Central Bank's rate decision and President Christine Lagarde's comments on France's bond turmoil. Brent crude traded lower, retreating from four-year highs amid diplomatic efforts to end the Middle East war. The World Bank said global commodity prices are set to surge 23% in 2026 due to conflicts and El Nino.