Gold Down on Fed Rate Hike Possibility

Posted By: Religare
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Gold futures closed lower in the international market on Thursday after the U.S. Federal Reserve hinted that interest rates will go up in December.

Gold Down on Fed Rate Hike Possibility

The Fed also announced it will slowly shrink its huge, economy-boosting $4.5 trillion balance sheet starting in October. Higher U.S. interest rates make other assets — such as bonds — more attractive relative to gold, which doesn't yield any interest. Higher rates also typically boost the dollar, making dollar-priced gold less attractive to investors using another currency.

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