Fed Rate Hike Pressures Gold Amid Record Chinese Imports
Spot gold prices fell on September 23 as the US Federal Reserve's interest rate hike put pressure on the precious metal. The dollar held near a two-month high, making dollar-priced bullion more expensive for buyers outside the US. Gold spot prices dropped by 0.6% to $4,329.31 per ounce at 0623 GMT.
The decline was also seen in other precious metals, with silver losing over 1%, platinum falling by 1.2%, and palladium down by 1.5%. December US gold futures slipped 0.2% to $4,366.90, according to Reuters.
Notably, physical demand for gold has been strong, driven by record Chinese imports. China imported over 1,000 tonnes of gold worth $158.8 billion in the eight months ending August, as reported by the Financial Times on September 22. This surge in demand highlights the divergence between spot prices and underlying market fundamentals.