Gold Prices Plummet as Fed Raises Interest Rates

Gold prices plummeted over 1% on Wednesday after the U.S. Federal Reserve raised interest rates, a move that hurt non-yielding bullion.

The spot gold price dropped to $4,240.1 per ounce as of 3:10 p.m. ET (1910 GMT), down from its session high of $4,365.57 earlier in the day.

U.S. gold futures for December delivery settled 1.3% higher at $4,387.50, but this increase was overshadowed by the decline in spot prices.

The Fed's decision to raise interest rates by a quarter of a percentage point to the 3.75%-4.00% range was seen as hawkish, with Chief Kevin Warsh promising the Fed would 'deliver price stability.'