Gold Prices Fall Amid US Interest Rate Hike

The US Federal Reserve raised its target for the federal funds rate by 25 basis points to a range of 3.75%-4%, sparking a slight downward pressure on gold prices.

Comex spot gold closed at approximately $4,293 per troy ounce, down about $9 compared to the last closing price but still significantly higher than one year before.

The Fed's decision was unanimous with 12 votes in favor and none against, citing that this rate increase would help reach the 2% inflation goal sooner.

Inflation remains a key driver for gold prices, with consumer prices recording an increase of 0.4% during August on a month-on-month basis and 3.4% on a yearly basis.