Commodities
Fed Rate Hike Sparks Gold Price Volatility Amid Record ETF Inflows
The Federal Reserve raised interest rates for the first time since July 2023 by 25 basis points to 3.75-4%, in line with expectations.
Despite the rate hike, gold prices initially fell by almost $100 but recovered most of the loss a day later.
The gold price remains under pressure from rising interest rates, but physical gold ETFs recorded their second-highest monthly inflow of investment capital ever in August, with over $18 billion invested.
China's central bank bought 650,000 troy ounces of gold in August, its largest purchase since October 2023, and the value of China's official gold reserves rose to $350.1 billion, up 14% from a month earlier.