Gold Surges 2% as US Dollar Trims Post-Fed Gains

The US Dollar's post-Fed gains have been trimmed, and gold has responded by climbing over 2% to around $4,370. This comes after the Federal Reserve hiked interest rates for the first time since 2023, with a 25 basis point increase in the federal funds target range.

The Fed's decision was met with a sharp initial gain in gold, but selling pressure increased as traders digested the updated interest rate projections and comments from Fed Chairman Kevin Warsh. Warsh stated that inflation is too high and described the hike as removing 'a dose of accommodation,' suggesting that further rate hikes may be on the horizon.

The US Dollar Index (DXY) has retreated to around 100.15, down from its highest level since July 31 at 100.37. Meanwhile, West Texas Intermediate (WTI) Oil has fallen nearly 2% to around $95.50.