Gold Prices Rebound Sharply After Fed Rate Hike Despite Higher Rates

Gold prices in India have rebounded sharply after the US Federal Reserve's rate hike, defying expectations that higher rates would weigh on precious metals. The domestic benchmark for gold stands at Rs 15,284 per gram for 24-karat gold, with Delhi's local rate slightly higher at Rs 15,299 per gram.

The rebound in gold prices is seen as a response to investors reading the Fed's signal of further tightening ahead as confirmation that underlying inflation risk remains real. This has boosted gold's safe-haven and inflation-hedge appeal despite higher rates.

Silver prices have also gained, rising over 4 percent on September 17 to near Rs 2,45,000 per kilogram. The international spot price of gold rebounded more than 2 percent to $4,360/oz on the same day.