17.09.202612:52:50UTC+00Gold Rebounds 2% as Investors Reassess Fed Rate Hike

Gold rose 2% to about $4,360 an ounce on Thursday, rebounding from a near six-week low hit on Wednesday, as investors reassessed their positions following the US Federal Reserve’s first interest rate hike in three years. The dollar pulled back from a seven-week high reached after US policymakers raised rates and signaled further increases in the coming months, with Fed official Kevin Warsh backing the unanimous decision and underscoring concerns that inflation remains elevated.

Although gold is traditionally seen as a hedge against inflation, higher interest rates typically curb its appeal by making interest-bearing assets more attractive. Elsewhere, the Bank of England left its benchmark rate unchanged on Thursday, while the Bank of Japan is widely expected to raise rates on Friday to their highest level in 31 years.

In commodity markets, oil prices extended their decline as fears of supply disruptions eased, while US President Donald Trump said he hoped an end to the conflict with Iran was near.