Gold Falls Despite Rate Hike Expectations
The article explains that the decision by the U.S. Federal Reserve to raise interest rates by 25 basis points to a range between 3.75% and 4% led to a decline in the price of gold, despite initially rising before turning into losses of approximately 1.3%. The market had anticipated the same increase, but the surprise was in the Fed's signals indicating ongoing inflation pressures and the possibility of further rate hikes before the end of 2026. This resulted in a strengthening dollar and higher short-term bond yields, which put downward pressure on gold, as it does not generate income. Additionally, ongoing monetary tightening and expectations of future rate increases deepen market pressure on the yellow metal, which lost about 4% of its value during September, amid investors awaiting inflation data and changes in the Fed's future policy path.
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