Trending
Gold
Source: Newsmaker.id
Gold prices reversed sharply lower during Wednesday's trading (Sept. 16) after the Federal Reserve officially raised interest rates and signaled that monetary tightening was not yet over. Spot gold fell 1.2% to US$4,240.10 per troy ounce, having previously surged more than 1% to reach US$4,365.57.
The Fed raised interest rates by 25 basis points to a range of 3.75%–4.00%. The central bank's latest projections also indicated that a majority of officials anticipate at least one additional hike before year-end, reinforcing the view that the tightening cycle is ongoing.
Fed Chair Kevin Warsh emphasized that the central bank remains focused on price stability, as inflation is still considered too high and has not shown meaningful improvement. This hawkish tone boosted the dollar and weighed on gold, a non-yielding asset.
Pressure was also evident across other precious metals. Silver fell 1.7% to US$62.57 per troy ounce, platinum weakened 2.3% to US$1,735.33, and palladium dropped 1.5% to US$1,269.95.
Newsmaker Analysis: Downward pressure on gold could persist if the market becomes increasingly convinced that the Fed will raise rates again in the coming months. However, following the sharp decline, attention will now shift to movements in the dollar and Treasury yields to determine whether the bearish pressure continues or if a technical rebound begins to emerge.
Source: Newsmaker.id