Gold prices stabilize following the US central bank raised interest rates by a quarter of a percentage point.
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Gold prices stabilize with the decline of the dollar
Gold prices stabilized today, Wednesday, with the dollar slipping, following the Federal Reserve (the US central bank) raised interest rates by a quarter of a percentage point in a move that was widely expected.
With the new decision, the US interest rate range increases from zero – 0.25% to 0.25 – 0.5%.
And the price of gold in spot transactions rose 0.1% to $ 1920.45 an ounce (an ounce), following it fell during the session by as much as 1.2% to $ 1894.70, in light of the jump recorded by the US Treasury bond yields following the central bank’s announcement.
And US gold futures fell 1.1% at settlement to $ 1908.40.
Gold is very sensitive to rising interest rates, as this increases the cost of holding bullion that does not yield a return, while supporting the dollar priced in it.
However, the dollar index fell 0.5% once morest a basket of currencies, which makes gold less expensive for holders of other currencies. Meanwhile, the benchmark 10-year Treasury bonds have also fallen from recent highs.
In terms of other metals, the price of silver in spot transactions rose 0.3% to $ 24.94 an ounce, and platinum jumped 3.3% to $ 1018.65. As for palladium, it fell 0.2% to $ 2418.56 an ounce, as concerns regarding supply receded.
