Gold and Silver Slide After Fed Holds Rates, Signals Possible Rate Hike Later in 2026

According to Kitco News, spot gold and silver prices dropped sharply after the Federal Reserve held rates unchanged Wednesday, while signaling that inflation could prompt another rate hike later in 2026. Spot gold traded near $4,260.10 an ounce, down 1.65%, while spot silver fell to $67.885, down 3.08%.

The Fed maintained the federal funds rate target range at 3.50% to 3.75% in a unanimous decision. Projections showed the median 2026 federal funds rate rising to 3.8%, up from 3.4% in March, with nine participants favoring a higher rate. Market expectations shifted sharply as traders repriced the next Fed move as a potential rate hike rather than a cut. U.S. stocks also declined, with the S&P 500 falling 91.25 points, or 1.2%, to 7,420.10.