The price of gold inched lower on Thursday as the dollar recovered in the wake of the US Federal Reserve’s approval, in line with many analysts’ expectations, of a 75-basis-point interest rate increase – its largest in over two decades – to stem a surge in inflation, and signal a slowing economy.
As of 10:30 UAE time, spot gold prices fell by 0.17% to US$1830.93 per ounce, while gold futures rose by 0.72% to $1832.75 per ounce. Federal Reserve officials raised interest rates by three-fourths of a percentage point, the biggest increase since 1994, which will raise the Fed’s benchmark federal-funds rate to a range between 1.5% and 1.75%.