Fed Hikes Rates Amid Trump Pressure: Gold Prices Take Hit

The US Federal Reserve raised interest rates by 25 basis points to 3.75%-4%, as widely expected, despite US President Donald Trump's push for cuts.

Spot gold rose initially but settled at $4,330.19 per ounce after the rate hike, amid ongoing inflation concerns and strong economic data.

The Fed's decision comes as policymakers see little evidence of a meaningful slowdown in inflation, keeping them focused on bringing it back towards its 2% target.

New policy projections showed 16 out of 18 policymakers anticipate at least one more quarter-percentage-point hike by the end of this year.