Gold Price Jumps as Fed Hikes Interest Rates Again
Gold prices rose on Thursday after the US Federal Reserve's interest rate hike and its signal that further policy tightening may follow. The Fed raised rates by a quarter of a percentage point and indicated more hikes in the coming months, with 16 out of 18 policymakers anticipating at least one more quarter-percentage-point hike by the end of this year.
The current uptick in gold is also driven by technical factors, with the Fed's hawkish message already largely priced into the market. However, gold's appeal as an inflation hedge is reduced when interest rates are higher because it boosts the attractiveness of interest-bearing assets.
Silver rose 1.2% to $63.73 per ounce, platinum firmed 1.7% to $1,783.56 and palladium climbed 2.2% to $1,296.70.