Gold Holds $4,230 Floor After Fed Hike, Eyes $4,430 Target
Gold prices have stabilized at $4,310.80 per ounce after a sharp decline following the Federal Reserve's rate hike on Wednesday.
The metal lost $100 in value to hit its lowest point of the week at $4,230 before rebounding by Thursday morning.
Despite the initial drop, gold has managed to hold onto its 100-day moving average at $4,323 and is currently trading within a range of $4,257 to $4,335.
The recovery is attributed to a decline in the 10-year Treasury yield, which fell more than 5 basis points to 4.949%, easing pressure on non-yielding gold.
Market experts believe that the path forward for gold will depend on whether markets price one more hike or three, with falling oil prices arguing for fewer hikes and the Fed's dot plot suggesting more.