Gold Prices Rebound Above $4,300 After Fed Rate Hike

The gold market experienced a sharp reversal on September 17 after the Federal Reserve raised interest rates by 25 basis points for the first time since 2023. The Fed lifted its federal funds target range to 3.75%-4.00% and signaled that another rate increase could be required before the end of 2026.

The decision initially pushed the US dollar higher and weighed on gold, but the precious metal later recovered as traders assessed the possibility that the tightening cycle had already been largely priced in. Reuters reported spot gold rising 1.2% to approximately $4,314.64 per ounce during Thursday trading.

For Australian gold traders, the key levels to monitor are $4,300 support, $4,340-$4,370 resistance, and $4,150 as a potential downside target.