Fed rate decision · FOMC
Impact High
Wednesday, October 28, 14:00 (New York time) — in 4 days
What it is
The US central bank announces whether it raises, lowers or holds its policy rate — the rate banks lend to each other at, which drags every other rate with it.
Why gold reacts
Gold pays no interest: holding it earns nothing by itself. When the Fed raises rates, leaving money in bonds pays more, and gold becomes less attractive by comparison. When it cuts, that opportunity cost fades and gold becomes competitive again.
Tends to help gold
A rate cut, or simply a signal that one is coming.
Tends to hurt gold
A hike, or language tougher than expected even with no rate change.
What to watch
The statement often matters more than the decision itself: the market prices in the number, but not the tone. The press conference follows 30 minutes later.