Gold Prices Plummet as Fed Raises Interest Rates

The global gold market experienced significant volatility following the US Federal Reserve's decision to raise its interest rate target range to 3.75%-4%. The move led to a sharp reaction in international bullion markets, with spot gold prices falling by over $22 an ounce. Despite this short-term weakness, the long-term outlook for gold remains strong, with prices up 16.39% over the past year and 639.59% over the past 20 years.

The Indian market was also impacted, with domestic gold prices fluctuating in response to global developments. The indicative retail price of 24K gold stood at ₹15,344 per gram, while 22K gold was priced at ₹14,065 per gram and 18K gold at ₹11,508 per gram.

Analysts quoted by the Times of India described the near-term gold outlook as cautiously bearish, highlighting the risk of further volatility. The immediate outlook remains sensitive to US interest rates, the dollar, and Treasury yields. Geopolitical uncertainty may continue to provide support for safe-haven demand.