Gold Prices Soar as Fed Raises Interest Rates Amid European Banks' Gold Shift

The global gold price rose sharply after the Federal Reserve raised interest rates by 0.25 percentage points to 3.75-4%. The Fed's decision was widely anticipated, and investors are now focusing on whether the central bank will continue to raise interest rates.

Gold prices have shown a good ability to absorb the shock from the Fed's decision, with current levels above $4,300 per ounce. However, if gold fails to hold above this level, the rally risks weakening, and gold could retest lower support levels.

Central banks are also shifting their attention towards gold, with European banks moving their reserves out of the US due to reliability concerns and a desire to keep gold closer in case of a crisis. The Netherlands and France have already moved their gold holdings from storage facilities in the US.