US Gold Price Falls $4,293 Following Rate Hike Decision

The US gold price fell by $4,293 on September 16, closing at approximately $143.50 per troy ounce due to expectations of a rate hike by the Federal Reserve.

The Fed increased its target for the federal funds rate by 25 basis points to a range of 3.75%-4%, citing that this decision would help it reach the 2% inflation goal sooner.

Increased interest rates may put pressure on gold as bullion does not yield anything, and when Treasury rates go up along with the rate of return on cash, the opportunity cost of holding bullion becomes even higher.