Gold Prices Rebound Amid Fed Rate Hike Uncertainty

World gold prices rebounded on September 17 as the US dollar weakened and oil prices cooled down. The spot price of gold increased by 1.2% to $4,312.05 per ounce after falling to a nearly six-week low in the previous session.

The Federal Reserve's decision to raise interest rates initially put downward pressure on gold, but investors quickly adjusted their positions as they realized the move was not unexpected. The Fed's message emphasized that the fight against inflation is not over yet, which maintained high interest rates and slowed economic growth.

The weakening dollar made gold more attractive to investors holding other currencies, contributing to a boost in buying demand in the international market. Additionally, US bond yields no longer showed strong upward momentum after the Fed's announcement, giving gold room for recovery.

Despite the rebound, the high interest rate environment remains a barrier to gold's long-term upward trend. If the Fed continues to send tough signals and the dollar recovers, gold prices may face further adjustment pressure.