Gold pares gains after US Federal Reserve raises interest rates

Gold prices trimmed some of their earlier gains today after the US Federal Reserve raised interest rates.

Spot gold rose 0.9% to $4,330.19 per ounce by 18:03 GMT, after climbing as much as 1.6% to $4,365.57 per ounce earlier in the session.

The US Federal Reserve decided to raise its benchmark interest rate by 25 basis points, marking its first rate hike since 2023, in a move aimed at countering persistent inflationary pressures and rising energy prices.

The rate increase follows a prolonged period during which the Fed had either cut or held rates steady, as markets anticipated a shift in monetary policy amid growing concerns over sustained inflation.