Gold Prices Plummet After Rate Hike, Newmont Stock Sees Brief Boost

The U.S. Federal Reserve raised interest rates for the first time in three years, setting a new target rate of 3.75% to 4%. This move makes savings more attractive than gold, causing gold prices to fall yesterday.

However, gold prices are rising again today, gaining nearly $100 an ounce to over $4,410.

Newmont Corporation (NYSE: NEM) stock jumped 2.8% in response to the increased interest rates, as investors backed away from a sell-off sparked by the rate hike.