Gold futures test six-year lows in wake of Fed rate hike
Gold futures plummeted overnight to a six-year low, following the US Federal Reserve’s decision to hike interest rates by 25 basis points at its latest monetary policy meeting.
Gold
$2,567.30
19:00 15/11/24
At 0948 GMT on Friday, COMEX gold for February delivery was up 0.41% or $4.30 at $1,053.90 an ounce, having declined from $1,075-levels prior to the Fed announcement – late on Wednesday – to $1,045-levels over the subsequent session.
Yann Quelenn, market strategist at Swissquote, said: “Gold's downside momentum keeps going. The precious metal is expected to show further weakness. In the long-term, the underlying downtrend continues to favour a bearish bias.
“A break of the resistance at $1,223 is needed to suggest something more than a temporary rebound.”
Speaking at a press conference after the policy announcement, Fed Chairwoman Janet Yellen assured the market that any future US interest rate increases would be gradual and depend on economic growth.
Yellen added that had the Fed had continued to delay a rate rise, it could have been forced to implement a more aggressive increase if economic growth soared and inflation suddenly jumped towards the 2% target.