The Federal Reserve’s unanimous decision to hold the federal funds rate between 3.50% and 3.75% did little to soothe markets. Instead, updated projections suggesting a 3.8% median rate for 2026 signaled that central bankers remain unhurried to pivot toward monetary easing. This hawkish outlook, combined with the dollar’s strength, tightened financial conditions and sapped the appeal of non-yielding assets like bullion.

While equity markets staged a recovery—with the S&P 500 rising 1.1% and the Nasdaq Composite climbing 1.9%—metals failed to find similar footing. Investors appear to be viewing the normalization of traffic through the Strait of Hormuz as a disinflationary catalyst. With oil prices softening, the safe-haven bid that previously supported gold has evaporated, shifting market focus back to real-rate pressures. Technically, gold bulls now face an uphill battle to reclaim the $4,300 resistance zone, while silver bears are eyeing a breach below the $65.00 support level.