Gold Tumbles After Fed Hikes Rates by 25 Basis Points

The Federal Reserve's decision to hike interest rates by 25 basis points has sent shockwaves through the markets, causing gold prices to plummet. The US central bank's move was in line with expectations, but it still had a significant impact on the value of the dollar and other assets.

According to the Summary of Economic Projections (SEP), 12 out of 18 officials believe there will be at least one more rate hike this year, while four expect two hikes. This hawkish stance has contributed to the dollar's strength against major currencies.

The gold price, which had reached as high as $4,366, is now hovering around $4,328.92. The metal remains capped below its 20-day and 200-day simple moving averages (SMAs), indicating a bearish tone in the market. The momentum indicators also suggest waning upside pressure.