Gaza Herald – Gold prices dropped by approximately 100 dollars per ounce after the US Federal Reserve decided to raise interest rates. The metal retreated from 4365 dollars to 4265 dollars amid growing pressure on the yellow metal due to rising yields and market assessments of the next phase of US monetary policy.
The Fed raised the interest rate by 25 basis points, stabilizing it within a range of 3.75% to 4%. This step came in line with market expectations, while the probability of raising it by a quarter percentage point before the decision reached about 93% according to the “Fed Watch” tool.
This marks the first US interest rate hike since 2023. The decision comes amid continued inflation above the Fed’s target of 2%, alongside rising energy costs. Data for August showed an increase in consumer prices by 0.4% on a monthly basis, while annual inflation stood at 3.4%.
Core inflation, which excludes food and energy, rose by 0.3% during August compared to the previous month, and by 2.4% on an annual basis. This reflects ongoing price pressures and increases the complexities of the US monetary policy path.
This report was produced in the Gaza Herald newsroom.
