Fed Rate Hike Sparks Gold Price Volatility

The gold market is experiencing strong fluctuations in price as of September 17. The Federal Reserve has raised its basic interest rate by 0.25% to 3.75-4%. This increase comes after a long period without changes, and the Fed continues to emphasize that inflation remains higher than its target of 2%. Market expectations suggest further interest rate hikes in 2026, which could put pressure on gold prices.

Gold has been trading around the $4,300 per ounce range throughout the week. Yesterday's trading session saw spot prices reach $4,347.91, driven by a weakening US dollar and lower oil prices. Technical analysis suggests that if gold can maintain above the $4,300 zone after the Fed's decision, it may return to the $4,400-4,450 range.