Gold Prices Drop as Dollar Rises After U.S. Rate Hike

Gold prices fell today as the dollar slightly recovered following a significant but widely anticipated increase in U.S. interest rates, which had caused a substantial decline in the dollar during the previous session. According to Reuters, by 02:35 GMT, spot gold was down 0.1% at $1,831.63 per ounce, while U.S. gold futures rose 0.8% to $1,833.40 per ounce. The U.S. rate hike in the short term and the increase in Treasury yields raise the opportunity cost of holding non-yielding gold. Yesterday, the U.S. central bank raised interest rates by 75 basis points, the highest level in more than 25 years, to curb rising inflation. For other precious metals, spot silver increased by 0.1% to $21.67 per ounce. Platinum rose by 0.2% to $940.98 per ounce, and palladium gained 0.5% to $1,870.79 per ounce.