Wall Street Rebounds, Gold Dips After FOMC Minutes

Wall Street’s stock market indices saw modest gains after the Federal Reserve released the results of its January meeting. Investors analyzed the results for clues about the future of interest rates and monetary policy. The general takeaway was that the meeting reiterated previous statements from the Fed and Chairman Jerome Powell.

The Dow Jones Industrial Average, the S&P 500, and the Nasdaq tech index all saw small increases. The Fed meeting results confirmed the Fed’s intention to hold interest rates steady in the near term, which was well-received by the markets. This improved investor confidence and pushed stock prices slightly higher. 

However, gold futures decreased at the close of trading on Wednesday as the US dollar strengthened following the Fed meeting. The typical inverse relationship between gold and the US dollar meant that the rising dollar put downward pressure on the price of gold.

Gold futures fell to $2,952 per ounce, down from the previous day’s close of $2,954. Intraday, gold reached a high of $2,964 and a low of $2,933. FOMC minutes were in line with expectations, leading to a slight improvement in investor sentiment and modestly higher stock prices. The stronger US dollar, however, caused a small drop in gold prices.