Spot gold traded at $4,043.60 an ounce, while silver hovered near $57.26. The precious metals found support from defensive demand as investors fled riskier assets, with the S&P 500 falling 1.52% and the Dow Jones Industrial Average dropping 2.19%. The market reaction was driven by a hawkish tone from the Federal Reserve; despite the pause, three FOMC members dissented in favor of a 25-basis-point hike, and Chair Kevin Warsh avoided providing strong forward guidance, leaving the 10-year Treasury yield elevated near 4.6%.

Simultaneously, energy markets reacted to intensifying conflict in the Middle East. Brent crude jumped 7.3% to $88.09 a barrel following renewed missile exchanges between U.S. forces and Tehran-backed militias. This spike in oil prices poses a dual challenge for gold: while geopolitical instability fuels safe-haven buying, the resulting inflationary pressure keeps interest rates higher for longer, capping significant upward momentum. Traders are now looking toward upcoming GDP and PCE inflation data for further clarity on the economic trajectory.