Gold and Silver Prices Plummet Over 1% as Fed Raises Interest Rates

The prices of gold and silver futures fell over 1% in Thursday's trading as markets assessed the Federal Reserve's monetary policy decision to raise interest rates in the US. The Fed indicated that further monetary tightening could be possible, which added to the downward pressure on precious metals.

The US Dollar Index remained unchanged at 100.28, while updated quarterly economic projections showed that 16 of the 18 policymakers expect at least one 25-basis-point rate hike by the end of this year. Only two expect interest rates to remain at current levels.

The Bank of England is expected to keep interest rates unchanged today, but investors are watching for any indication that higher energy prices could force it to follow the Fed's lead. The prices of gold and silver futures fell as a result, with gold (October futures) falling 1.40% to $4,291.50, while silver (December futures) fell 1.50% to $63.95.