Gold Prices Rebound from Near Six-Week Lows Amid Fed Rate Hike

Gold prices rebounded on Thursday after hitting a near six-week low in the previous session. The precious metal's value increased by 0.5% to $4,283.45 per ounce as investors assessed the U.S. Federal Reserve's interest-rate increase and its signal that further tightening may follow.

The Fed raised interest rates on Wednesday and flagged more hikes in the coming months, with new U.S. central bank chief Kevin Warsh joining a unanimous decision. In a statement, Warsh said there had been 'a pretty wide-ranging set of data, including the labor markets, that the economy has strengthened.'

Rising interest rates tend to pressure gold by increasing the appeal of interest-bearing assets. Data showed U.S. retail sales rebounded sharply in August as households boosted purchases of a range of goods while also spending more at restaurants and bars.