Gold Gains as Fed’s Rate Comments Are Less Hawkish Than Feared

• Fed holds rates steady, citing lack of inflation progress
• Forward guidance gives implicit nod to cutting rates

Gold advanced as investors found comfort in the Federal Reserve’s signals that it will still pivot to lowering borrowing costs after gaining enough confidence that price gains are cooling.

Officials unanimously decided to leave the target range for the benchmark federal funds rate at 5.25% to 5.5% — where it’s been since July — following a slew of data that pointed to lingering price pressures in the US economy.