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Update: Gold Falls, Dollar Rises as Half of Fed Members Expect a Rate Increase in 2026

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(Updates price move in second paragraph.)

Gold was lower in late-day trading Thursday as the dollar rose to its highest level in more than a year after the US Federal Reserve left interest rates unchanged at the conclusion of its two-day policy meeting on Wednesday.

Gold, which has an inverse relationship with the greenback, was down US$135.90 to US$4,245.70 per ounce. The dollar was up 0.5% Thursday, heading for its highest close since May 2025.

The Federal Open Market Committee on Wednesday left U.S. benchmark interest rates unchanged. Half of the committee members still expect rates to rise this year as inflation remains well above the 2% target rate.

"Gold tumbled ... after a surprisingly hawkish FOMC meeting signalled the potential for another rate hike later this year," Saxo Bank wrote.

Treasury yields fell, with the US two-year note last seen paying 4.162%, down 3.3 basis points, while the yield on the 10-year note was down 5.9 points to 4.441%.

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