Gold soars as Fed hikes rates by 25 basis points

Published on Feb 02, 2023 13:24

COMEX Gold futures scaled up impressively as the US dollar extended its losing spree and fell near a multi month low amid signs that the US interest rate raising spree is about to move onto a softer trajectory. The US central bank announced a quarter-point hike to the benchmark lending rate at the end of its two-day policy meeting, taking the rate to a target range of 4.50-4.75 percent. Inflation has eased somewhat but remains elevated, said the Fed`s policy-setting Federal Open Market Committee (FOMC) in a statement. This undertone hurt the US dollar index which fell under 101 mark and boosted Gold as a result. The yellow metal jumped to near 9 month high and currently trades at $1971 per ounce, up 1.50% on the day. Prices saw an extremely volatile action yesterday, swinging around 2% in intraday moves.