Gold rises as investors digest Fed rate hike

Gold prices rose on Thursday, September 17, as investors digested the U.S. Federal Reserve’s interest rate hike and signals that further monetary policy tightening could follow.

Spot gold rose 0.8% to $4,295.26 per ounce as of 0443 GMT, after hitting a near six-week low in the previous session. 

U.S. gold futures for December delivery fell 1.2% to $4,333.90 per ounce.

The Federal Reserve raised interest rates on Wednesday and signalled that further increases could follow in the coming months. Updated projections showed that 16 of 18 policymakers expect at least one more quarter-percentage-point increase by the end of the year.

Higher interest rates typically reduce the appeal of non-yielding gold, while an easing in oil prices provided some support to the precious metal.