Fed Rate Hike Sends Gold Prices Tumbling Near Six-Week Low

Gold prices ticked up on Thursday after hitting a near six-week low in the previous session. The metal's value was affected by the US Federal Reserve's interest-rate increase, which sparked concerns that further tightening may follow.

The Fed raised interest rates on Wednesday and indicated more hikes are coming, citing strengthening labor markets and inflation worries. New US central bank chief Kevin Warsh supported the rate hike, saying 'There's been a pretty wide-ranging set of data... that the economy has strengthened.'

As interest rates rise, gold becomes less attractive to investors who can earn higher returns from other assets. Despite this, spot gold was up 0.5% at $4,283.45 per ounce, while U.S. gold futures for December delivery were down 1.5% at $4,321.80.

The Bank of England is expected to keep interest rates on hold on Thursday, but investors are watching for any signals that it may follow the Fed's lead and raise rates due to surging energy prices.