Gold prices rebounded, drawing support from falling oil prices and a weaker dollar. As of 9:46 p.m. Thailand time, spot gold was up 15.20 dollars, or 0.35%, at 4,362.05 dollars an ounce, while COMEX December gold futures rose 19.30 dollars, or 0.44%, to 4,406.80 dollars an ounce. The drop in oil prices eased investors' inflation concerns, while the weaker dollar boosted gold's appeal and made futures cheaper for holders of other currencies. The Federal Reserve's monetary policy committee voted unanimously 12-0 to raise short-term interest rates by 0.25% to a range of 3.75-4.00% at yesterday's meeting, the first increase in more than three years, or since July 2023, after which the Fed had cut rates six times by a total of 1.75%. The Dot Plot report indicated that 16 of 18 officials expect one more rate hike this year.
Fed unanimously raised the short-term rate by 0.25% to 3.75-4.00%, the first hike in over three years, lifting the effective funds rate.
The Fed's rate hike and dot plot signaling another hike this year push Treasury yields higher.
