Gold Prices Soar Amid Fed Rate Hike, Oil Rally Fades

Gold prices surged over 1% on Thursday as investors processed the US Federal Reserve's interest rate hike and its signal that further policy tightening may follow.

The spot price of gold rose to $4,310.49 per ounce, while US gold futures for December delivery declined by roughly 1% to $4,348.70.

Kelvin Wong, senior market analyst at OANDA, attributed the current uptick in gold prices to technical factors, with the Fed's hawkish message already largely priced into the market.

Wong noted that although gold is considered an inflation hedge, higher interest rates reduce its appeal by boosting the attractiveness of interest-bearing assets.