Gold falls 0.9% to $4,316.78 per ounce as dollar strengthens
Business
Gold took a hit on Wednesday, dropping 0.9% to $4,316.78 per ounce, after the US dollar got stronger and Federal Reserve officials hinted at more interest rate hikes ahead.
With the US dollar reaching a two-month high, gold became pricier for people using other currencies, so demand dropped.
Fed raises key rate to 3.75%-4%
The Fed just raised its key rate to 3.75% to 4% and might bump it up again before year-end (there is a 53% chance of another hike in October).
Richmond Fed President Tom Barkin said these moves could help keep inflation in check without hurting the economy, but it also means gold isn't as tempting compared to assets that pay interest.
silver, platinum, and palladium prices also slid alongside gold.