Commodities
Gold Defies Higher Interest Rates as Safe Haven Demand Surges
The Federal Reserve raised its federal funds target range by 25 basis points to 3.75%-4.00% on September 16, marking its first hike since 2023.
Gold initially reacted as expected, falling from around $4,360 to roughly $4,240 after the decision.
However, despite higher interest rates still applying pressure, gold has not shown lasting weakness.
The same geopolitical risks that are adding to inflation pressure are also strengthening gold's role as a safe haven.