Gold Jumps Over 1% as Fed Hike Spurs Interest Rate Fears

Gold prices surged over 1% on Thursday as investors processed the U.S. Federal Reserve's interest rate hike and its indication that additional tightening may follow.

The spot price of gold rose to $4,310.49 per ounce, while U.S. gold futures for December delivery were down around 1% at $4,348.70.

Market analyst Kelvin Wong from OANDA attributed the current uptick in gold to technical factors, stating that the Fed's hawkish message is already priced into the market.

However, he noted that higher interest rates reduce gold's appeal by making interest-bearing assets more attractive.