Gold prices move following Fed interest rate decision
While the Fed kept the policy rate steady in the 5.25-5.50 percent range in line with expectations, gold prices saw a rapid rise following the decision.
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In the projections for the coming year released after the decision, it was observed that Fed officials expect a 75 basis point interest rate cut in 2024.
The ounce price of gold rose from 1,980 dollars to 2,014 dollars within 1 hour. The dollar/TL exchange rate retreated from 29.05 to 28.99.
With the Fed providing a clearer signal toward easing compared to previous meetings and Fed Chair Jerome Powell reinforcing this expectation of a dovish stance with his statements, there was an initial drop of approximately 15 basis points in US 10-year Treasury bond yields.
INCREASE IN OUNCE PRICE OF GOLD
As bond yields fell, the ounce price of gold rose from 1,980 dollars to 2,014 dollars within 1 hour.
Domestically, the gram gold price in the spot market rose from 1,850 liras to 1,879 liras.
DECLINE IN THE DOLLAR
Following the Fed decision, the dollar index, which shows the performance of the dollar against major currencies, saw a 0.9 percent decline. The dollar/TL exchange rate retreated from 29.05 to 28.99 in a low-volume market.