Gold Plunges Toward $4,250 After Fed Hints at Future Rate Hike
Gold (XAU/USD) slumped to near $4,250 in early Asian trading as the Federal Reserve held rates steady but signaled a potential hike later this year, boosting the dollar and pressuring the precious metal.
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Gold tumbled to around $4,280 during the early Asian session on Thursday, extending losses toward the $4,250 region. The sell-off accelerated after the US Federal Reserve decided to keep its benchmark interest rate unchanged but warned that borrowing costs could rise later this year.
The hawkish tone from the Fed strengthened the US dollar and pushed Treasury yields higher, reducing the appeal of non-yielding assets like gold. Traders now await further cues from Fed speakers and incoming economic data.
Source: FXStreet Forex News