Bargain hunters go for gold after Fed-inspired decline
The dollar's reaction to the Federal Reserve's rate hike was muted enough to bring investors back into the gold market
Bengaluru — Gold prices rose on Thursday as investors looked for bargains after the metal fell to a two-week low in the previous session. That decline followed the US Federal Reserve's interest rate hike but limited gains in the dollar after the decision supported demand for the metal. Spot gold had risen 0.4% to $1,198.22 an ounce by 4.04am GMT. On Wednesday the metal touched its lowest since September 11 at $1,190.13 an ounce. Spot gold prices have closed in a range between $1,210 and $1,190 an ounce since August 28. US gold futures were up 0.3% at $1,202.10 an ounce. As expected the US Federal Reserve raised interest rates for the third time this year on Wednesday, and left intact its plans to steadily tighten monetary policy. It forecast that the US economy would enjoy at least three more years of growth. "The fact that the Fed didn't come out as overly hawkish meant there was some positivity felt through emerging market currencies. This may be playing in gold being gingerly bou...
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