Gold Rebounds Above $4,300 After Fed Hike and Easing Dollar

The price of gold rose on Thursday after the Federal Reserve raised interest rates for the first time in over three years. The precious metal rebounded above $4,300 per ounce as the dollar eased its rally. Spot gold advanced 1.9% to $4,346.62/oz, while platinum was down 0.1% to $4,385.17/oz.

The Fed's decision to raise rates to 3.75%-4.00% from 3.50%-3.75% supported the rebound in gold prices. Higher interest rates tend to weigh on gold and strengthen the dollar, making bullion more expensive for foreign buyers.

Precious metal market participants also digested hawkish indicators from both the updated Summary of Economic Projections and Fed Chair Kevin Warsh's press conference. The new dot plot showed at least 12 FOMC members seeing one more rate hike this year, with another quarter-point rate hike in October remaining a toss-up.