US Fed Raises Interest Rates, Gold Prices React

The US Federal Reserve raised its benchmark interest rate by 0.25 percentage points to 3.75-4% on September 16, marking the first increase since July 2023.

Persistent inflation in the United States was a key factor behind the decision, despite economic activity continuing to expand at a solid pace and domestic spending remaining steady.

The Fed's interest rate hike can influence global stock markets, currencies, investment flows, and commodities such as gold.

A stronger US dollar may make dollar-denominated investments more attractive to international investors, potentially strengthening the dollar further.