Gold Rebounds After Fed Rate Hike Amid Long-Term Demand Outlook
Gold prices rebounded after the US Federal Reserve's interest rate hike, defying initial expectations of a sharp decline. Analysts and investment banks maintained a positive long-term outlook for gold, citing structural challenges facing the world's largest economy.
The spot price of gold rose 1.52% to $4,326 an ounce at 4 pm on Thursday in Hong Kong, after trading as low as $4,234 at 3 am in the city. The Fed meeting had triggered a brief drop in gold prices, but experts say this is just a short-term correction.
According to analysts, the world's largest economy is facing structural challenges that will continue to drive demand for gold in the long term. This positive outlook is expected to support gold prices despite the recent interest rate hike by the Fed.