Fed Rate Hike Slams Gold and Silver

The U.S. Federal Reserve raised interest rates for the first time since 2023 on September 16, sending shockwaves through the market.

Gold and silver initially rose in anticipation of the rate hike but quickly reversed course as the dollar surged higher. The SPDR Gold Shares ETF (GLD) fell after reaching a high point post-market.

The Fed signaled that more tightening may be needed to contain inflation, which sent investors fleeing from non-yielding assets like gold and silver. This move comes as part of the Fed's ongoing efforts to combat rising prices.