The Fed raised its policy rate after a three-year hiatus, and gold prices saw a decline
Following the US Federal Reserve's first rate hike in three years, there was a sharp drop in both ounce and gram gold prices.
The US Federal Reserve raised its policy rate to the 3.75-4.00 range after a three-year hiatus. Following this move, activity was observed in global and local markets.
Announcement of the Fed Decision
The US Federal Reserve officially announced the policy rate decision closely monitored by the markets. The bank raised the policy rate to the 3.75 - 4.00 range for the first time in three years.
This rate hike decision caused general activity in financial markets.
Gold Prices Prior to the Decision
With interest rates rising in parallel with market expectations, ounce gold entered an upward trend prior to the decision. Ounce gold gained around 1.3 percent, climbing up to the $4,353 level.
Gram gold, in parallel with this rise in ounce gold, continued to trade around the 6,812 Turkish Lira level.
Markets and Decline After the Decision
Following the US Federal Reserve's announcement of the interest rate decision, the picture in the gold markets completely changed and the needle reversed.
Following the statements made by the Fed after the meeting, ounce gold retreated down to the $4,324 level.
Gram gold, along with this sharp drop, retreated down to the 6,638 Turkish Lira level.