Gold Prices Tumble as Interest Rates Rise to 4%

The Federal Reserve raised interest rates for the first time in three years yesterday, increasing the target rate to 4%.

This decision makes savings more attractive than gold, as investors can earn a higher return on their money by putting it in bonds or bank accounts.

Gold prices fell yesterday, but are rising again today after the initial drop. The current price of gold is $4,397 per ounce.

Goldgroup Mining's stock jumped over 6% initially after the Fed's decision before retreating to a mere 0.6% gain by mid-morning.