Gold Retreats as Fed Hike Weighs on Prices

Gold has retreated from its record highs following the Federal Reserve's latest policy move. Despite the Fed raising its benchmark corridor by 25 basis points to 3.75-4.00 percent, gold prices steadied at $4,360.58 per troy ounce after a brief dip.

The increased interest rate outlook is expected to reduce demand for non-yielding assets like gold, but central banks and exchange-traded funds (ETFs) have provided a sturdy base of support.

According to the World Gold Council, net official-sector purchases reached 288.9 tonnes in the second quarter of 2026 alone, a 62 percent jump from the same period a year earlier.

China's central bank has been among the most persistent buyers, adding 20.2 tonnes in August and extending its buying streak to a 22nd consecutive month.