Gold turned to the downside after the US Federal Reserve chief said on Wednesday that it was too early to discuss halting interest rate hikes, after prices of the precious metal jumped more than 1% when the bank indicated the possibility of curbing future interest rate increases.
And gold fell in spot transactions by 0.5% to reach $ 1640.05 per ounce, by 19:45 GMT, while gold futures in the United States increased by 0.02% at settlement to reach $ 1650 before the Federal Reserve’s decision.
Gold prices jumped more than 1% after the US Federal Reserve raised interest rates by 75 basis points, as was widely expected, but indicated that future increases in borrowing costs could be lower given the cumulative effect of monetary policy tightening on its part. Until now.
Later, Powell warned against any speculation that the central bank would soon stop raising rates.
Gold is strongly affected by interest rates, as their increase increases the opportunity cost of acquiring the precious metal, which does not generate a fixed return.
The dollar index and 10-year Treasury yields rebounded after Powell's comments.
And the average price of gold will reach $ 1712.50 an ounce next year, according to a Reuters poll, up from current levels.
And silver fell in spot transactions by 1.6 percent to $19.3 an ounce, after rising to a three-week high last Tuesday.
The price of platinum also decreased by 0.7% to reach $936.28, while palladium fell by 1.3% to the level of $1,856.50.
