Latest status of ounce and gram gold prices following Fed's interest rate decision

Following the US Federal Reserve's (Fed) decision to keep its policy rate steady in the 3.75-4 percent range, spot gold fell by 0.9 percent to $4,030 per ounce, while domestic gram gold was sold at 6,458.86 liras.

Gold prices saw a decline following the evaluation of messages given after the US Federal Reserve's (Fed) monetary policy meeting. As of 09:40, spot gold dropped by 0.9 percent to $4,030 per ounce, while domestic gram gold traded at a buying price of 6,403.96 liras and a selling price of 6,458.86 liras at the same hour. The price of gram gold is influenced by international ounce prices as well as the USD/TRY exchange rate, supply and demand conditions, the buying-selling spread, and craftsmanship factors.

The Fed kept its policy rate steady in the 3.75-4 percent range in line with expectations. High interest rates can increase the opportunity cost of holding gold, which yields no interest, thereby reducing the appeal of the precious metal. According to CME FedWatch data, markets' pricing for a rate hike in December dropped from around 84 percent prior to the decision to roughly 78 percent.

Investors are tracking the Fed's interest rate decision alongside Chairman Kevin Warsh's statements, developments in West Asia, and US economic data. Kedia Commodities Director Ajay Kedia stated that uncertainties caused by the war in West Asia and investors readjusting their positions ahead of inflation data had an impact on gold prices. Meanwhile, the markets' focus is on the Personal Consumption Expenditures (PCE) price index, which is closely monitored by the Fed in line with its 2 percent inflation target and expected to be released at 15:30.