Gold falls to near $4,250 after Fed delivers rate hike
Gold price (XAU/USD) attracts some sellers to around $4,265 during the early Asian session on Thursday. The precious metal extends its downside after the US Federal Reserve (Fed) raises interest rates and signals another rate increase is likely this year.
Gold prices fell close to $4,250 on Thursday after the US Federal Reserve raised interest rates for the first time since July 2023. The Federal Open Market Committee voted to increase the benchmark federal funds rate to a range of 3.75% to 4.0%, signaling more hikes may be on the horizon this year. Fed Chair Kevin Warsh expressed concerns over inflation, citing various products and services with annualized price gains above 3%.
Higher interest rates typically make assets that yield interest, like gold, less attractive. US President Donald Trump urged the central bank to lower rates to "1% or less" after the initial rate hike. The trade between the US Dollar and gold is inverse, with a weaker dollar and higher gold prices. Technical analysis suggests current bearish pressure on gold, with support near $4,200.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 4 other outlets
- Financial authorities say Fed's rate hike to have limited market impact en.yna.co.kr
- Financial authorities say Fed's rate hike to have limited market impact koreatimes.co.kr
- Fed policymakers rally around the ‘price stability flag’ in rate hike financialpost.com
- Interest rate hike a 'reassuring' sign Fed is acting independently, economist says pbs.org
