Gold prices climb after Fed hikes rates

By Norhan Adel On Mar 23, 2023

An employee holds a 1-kilogram gold bar in the precious metals vault at Pro Aurum KG in Munich, Germany — Image Credits to Andreas Gebert | Bloomberg via Getty Images

Following the U.S. Federal Reserve’s unanimous decision on Wednesday to raise interest rate a quarter percentage, gold prices hike again to reach around $1,976 per ounce, increasing about 2 percent in the few hours after the Fed’s announcement.

Tina Teng from financial services company CMC Markets said she expects gold will trade between $2,500 to $2,600 an ounce. The precious metal has already gone beyond $2,000 on Monday; recording its highest since March 2022.

The failure of Silicon Valley Bank and Signature Bank in addition to UBS acquiring huge shares of Credit Suisse have prompted more investors to store their assets in the form of gold; given the uncertainty surrounding the banking landscape at the moment.