Gold falls over 1% after Fed signals possible rate hike
Business
Gold took a hit on Wednesday, dropping over 1%, after the US Federal Reserve signaled it might raise interest rates later this year.
That news made the US dollar stronger, which pushed up gold prices for anyone buying with other currencies.
Basically, when rates go up, gold usually loses some of its shine for investors.
December rate hike odds jump
The chance of a December rate hike jumped to 78% (up from 61%) right after the Fed's announcement.
Spot gold slid to $4,299.89 per ounce and US gold futures closed at $4,381.40, with spot gold down for the day and US gold futures up.
Silver and platinum also dropped as higher rates and a strong dollar made these metals less appealing and more expensive for buyers outside the US.