The Federal Open Market Committee voted 10-2 to keep benchmark rates between 3.75% and 4.00%, acknowledging that inflation remains stubbornly elevated despite resilient economic growth. Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack broke ranks, calling for a 25-basis-point increase. This split suggests the central bank is far from a pivot, with futures markets pricing an 83% probability of a rate hike at the December meeting.

Precious metals face a complex landscape as renewed tensions in the Middle East drive crude oil prices higher, complicating the inflation outlook. While the instability supports gold as a defensive asset, rising energy costs simultaneously reinforce the case for continued Fed tightening. Investors are now pivoting toward Thursday’s personal consumption expenditures (PCE) report, which will serve as a critical gauge for policymakers. Any sign of persistent underlying inflation could bolster Treasury yields, placing further downward pressure on bullion as the global economic environment remains defined by uncertainty.