Gold prices extended their decline of more than 1% after the Federal Reserve (Fed) kept rates unchanged, Chairman Jerome Powell also hinted that he would remain on the board until the criminal investigation against him is dropped.
At 9 am, gold prices were trading at $4,568.24, up 0.53% since it opened in early trading Thursday in the Asian session.
In his final press conference as Fed Chairman, Powell also congratulated Kevin Warsh, who is seen as getting closer to replacing him.
Powell stressed that he would continue to serve as governor while political pressure remains, in addition to warning that the Fed's independence is now under threat. He also clarified that he would not play a high-profile opposition role after stepping down.
Meanwhile, the Federal Open Market Committee (FOMC) kept interest rates at a range of 3.50% to 3.75% in a decision that showed a sharp split with an 8-4 vote, the largest since 1992.
Stephen Miran supported a rate cut, while Beth Hammack, Neel Kashkari and Lorie Logan rejected any early signs of easing in the current statement.
In market developments, the US dollar continued to strengthen as traders reassessed monetary policy expectations. The US Dollar Index (DXY) rose 0.37% to 98.96.
Meanwhile, the yield on the 10-year US Treasury bond rose eight basis points to 4.43%, reflecting investors' concerns about potential higher inflationary pressures.
