Gold Prices Plummet After US Fed Rate Hike

The price of gold retreated from its previous gains after the US Federal Reserve raised interest rates by 25 basis points, as investors anticipate another rate hike before the end of the year.

Spot gold traded at $4,308 per ounce on September 17, following a decline in prices below $4,250 per ounce. However, it recovered some losses as markets digested the Fed's decision to raise interest rates from 3.50-3.75 percent to 3.75-4.00 percent.

Fed Chair Kevin Warsh noted that inflation remains high, with US core inflation increasing more than expected in August.

Analysts predict that gold could retest the $4,250-$4,300 range, and a sustained break below this zone could lead to prices falling to $4,150-$4,100.