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Gold Jumps After Fed Scales Back Forecasts for Interest Rates

  • Odds of rate increase in June declines after Fed statement
  • Fed statement signals ``weak'' economic growth, Foster says
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Gold snapped a three-day losing streak after Federal Reserve officials held off from raising borrowing costs and scaled back forecasts for how high interest rates will rise this year.

The Fed kept the target range for the benchmark rate at 0.25 percent to 0.5 percent, according to a statement Wednesday following a two-day meeting. Policy makers’ updated projections implied two quarter-point increases this year, down from four forecast in December. Lower rates are a boon for gold, which becomes more competitive against interest-bearing assets.