Gold falls as the Fed shows no sign of stopping interest rate hikes

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Gold prices slipped in Wednesday’s session after the US Federal Reserve (Fed) signaled that interest rates would continue to increase in the new year and said it was too early to consider lowering interest rates.

At the end of the session, the spot gold contract fell 0.18% to $ 1,806.99 an ounce after falling 0.8% at the time the Fed announced a 50 basis point increase in interest rates as expected. At the same time, the central bank also said it would raise borrowing costs by at least 75 basis points by the end of 2023.

Fed officials expect to continue raising rates in 2023 and only turn to cut rates in 2024.

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