Gold falls more than 1% after Fed raises interest rates
Gold prices fell more than 1% after the US Federal Reserve raised interest rates and signalled further increases, pushing the dollar higher and pressuring non-yielding bullion.
Gold Market
Gold prices fell more than 1% after the US Federal Reserve raised interest rates and signalled further increases, pushing the dollar higher and pressuring non-yielding bullion.
Gold prices rose on September 16 supported by a weaker US dollar. Traders awaited the Federal Reserve's policy decision, with markets pricing a 90% chance of a quarter-point rate hike.
Gold prices erased gains and slid after the Federal Reserve hiked rates by 25 bps to a 3.75-4.00% range, with most officials projecting at least one more increase this year.
Gold failed to break above $4,500 and corrected lower, dipping below $4,450 and testing the $4,250 support zone. A bearish trend line at $4,355 is capping near-term gains.
Gold and silver prices rose in domestic markets on Wednesday, with MCX gold futures gaining Rs 1,300 per 10 grams and silver climbing Rs 4,000 per kg ahead of the US Fed decision.
Gold trimmed its intraday losses on Tuesday but remained under pressure from a rising US Dollar and multi-year high Treasury yields as markets awaited a widely expected Fed interest rate hike.
Gold trades near $4,300, well below last month's peak, as the Fed prepares a likely rate hike and the US dollar rallies. Market awaits Wednesday's decision.
Gold traded around $4,290 an ounce after falling to a five-week low, as Middle East oil disruptions reinforced expectations of a Federal Reserve rate hike this week.
Gold declined on Tuesday as rising crude oil prices and benchmark Treasury yields near 5% reinforced expectations of elevated interest rates ahead of the Fed's decision.