Following its two-day monetary policy meeting, the U.S. central bank left interest rates unchanged within a range between 2.00% and 2.25% as expected. However, in its statement, the committee reiterated its expectations to continue down the path of gradual tightening.
“The Committee expects that further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective over the medium term,” the central bank said in its statement. “Risks to the economic outlook appear roughly balanced.”
The Federal Reserve’s continued commitment to raising interest rates continues to support the U.S. dollar, which in turn, weighs on gold prices. December gold futures last traded at $1,226.80 an ounce, down 0.15% on the day.