Gold Prices Rebound After Fed Hike as Dollar Eases
Gold prices rebounded on Thursday after the Federal Reserve raised interest rates for the first time since 2023. The Fed's decision to increase the federal funds rate by a quarter of a percentage point was widely expected, but it still sent shockwaves through markets.
The median projection for the policy rate at the end of 2026 rose to 4.1% from 3.8% previously, indicating support for additional rate increases. This hawkish guidance weighed on gold prices, which do not pay interest and are sensitive to interest rates and currency fluctuations.
Despite the rebound, technical analysts are warning that gold is under pressure. Tony Sycamore, senior market analyst at IG, believes that gold needs to reclaim its 200-day moving average near $4,539 to signal a resumption of the broader uptrend.