Initial Developments in Gold Prices Following the Fed's Interest Rate Decision
The US Central Reserve raised interest rates by 25 basis points after a three-year hiatus to combat persistently high inflation and resilient spending.
The US Central Bank raised interest rates for the first time in a long period, bringing the policy rate to a range of 3.75 to 4.00 percent. This significant decision, taken unanimously by the Federal Open Market Committee, resonated widely in global markets.
Interest Rate Decision and Rationale
In the framework of combating the economic outlook and persistently high inflation, the US Central Bank increased the policy rate by 25 basis points to the 3.75-4.00 percent range. It was reported that the decision was taken unanimously, taking into account the robust pace of the economy and resilient domestic spending.
Initial Reactions in the Markets
While volatility was experienced in global markets following the decision, the dollar index climbed above the 100 level after five weeks. The two-year US Treasury yield exceeded 4.7 percent, reaching its highest levels since late July 2024.
Statements by Chairman Kevin Warsh
FED Chairman Kevin Warsh emphasized during the post-meeting press conference that their primary focus was price stability. Warsh stated that inflation risks continued to trend upwards, while risks related to the labor market displayed a balanced outlook.
Latest Situation in Gold Prices
Following the interest rate decision and market developments, spot gold lost 0.7 percent in yesterday's trading and closed at the $4,263 level. Dropping as low as $4,235 during the day, spot gold traded around $4,282 with a limited positive trajectory on the morning of September 17.
Gold Levels in the Domestic Market
Following these developments in global markets, domestic gold prices took shape accordingly. The buying price of gram gold stands at 6,749.26 Turkish Liras, while the selling price is at 6,750.26 Turkish Liras.