Gold ended its series of declines with a rising rebound after the Federal Reserve’s (Fed) announcement to raise interest rates failed to stimulate a strengthening US dollar.
The precious metal initially fell to a two -week low following the Fed decision, but rose again following the greenback dollar’s recorded decline.
In the Asian session, spot gold traded hovering around $ 1,935 per ounce, rising from its previous low of $ 1,894 per ounce.
The US central bank raised interest rates for the first time since 2018 by meeting market forecasts for a 25 basis point increase to 0.50% and signaling to act more aggressively in fighting inflation.
Gold usually tends to decline when the central bank raises interest rates, but according to the current situation the depreciation of the US dollar supports the yellow metal on the rise.
In Chairman Jerome Powell's speech following the Fed's decision, US inflation is expected to remain above the central bank's 2% target until 2024. This also indirectly supports gold as an inflation hedge.
In addition, gold also got a boost from US retail sales data which showed a lower -than -expected decline, signaling weak consumer spending amid rising prices.
