According to the announcement from the U.S. Federal Reserve on Wednesday, new Fed Chair Kevin Warsh announced major policy reforms following the FOMC's unanimous decision to keep the federal funds rate at 3.50%–3.75%. Most notably, Warsh stated that the Fed will remove forward guidance from its policy statement, thereby eliminating the dot plot— a mechanism previously used to communicate interest rate forecasts to the market. Futures gold prices dropped $146, or 3.31%, within two hours after his press conference.

This policy shift increases uncertainty for future monetary decisions, as the Fed will respond to new data without committing to a predetermined path. Warsh also announced five new working groups focused on communication, balance sheet, data sources, productivity-labor-AI dynamics, and inflation framework. Gold continued to decline on Thursday, closing down $48.40, or 1.13%, at $4,227.90, as the U.S. dollar rose 0.86% on Wednesday and 0.45% on Thursday.