Gold Stabilizes After The US Federal Reserve Rate Hike

Gold prices stabilized on Wednesday as the dollar weakened after the US Federal Reserve raised interest rates by a quarter of a percentage point in a widely expected move.

And the price of gold in spot transactions rose 0.1 percent to $ 1920.45 an ounce (an ounce) at 1920 GMT, after it fell during the session by as much as 1.2 percent 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 percent to settle at $1,908.40.

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% against a basket of currencies, making gold less expensive for holders of other currencies, while the benchmark 10-year Treasury bonds also fell from recent highs.

In terms of other metals, the price of silver in spot transactions rose 0.3 percent to $ 24.94 an ounce, and platinum jumped 3.3 percent to $ 1018.65.

As for palladium, it fell 0.2 percent to $ 2418.56 an ounce, amid ebbing concerns about supply.