Gold Prices Surge As Fed Raises Interest Rates

New York (Mar 15)  Gold prices are higher as the Federal Reserve raised interest rates, as expected, by 25 basis points but keeps its outlook relatively unchanged from previous projections.

In its statement, the U.S. said that the nation’s economic activity has expanded at “moderate pace,” unchanged from January’s meeting.

Ahead of the report, gold prices were trading in positive territory above around key support at $1,200 an ounce. In reaction to the statement and new projections, April Comex gold futures last traded at $1,210.20 an ounce, up 0.63%.

Gold is attracting some investor interest as the Fed keeps its projections to three rate hikes by the end of the year, unchanged from December.

In its much anticipated statement, the Fed said that it is raising interest rates within a new range between 0.75% and 1.00%, up from the previous range between 0.50% and 0.75%. However, analysts have noted that markets are looking passed this meeting, focusing on the trajectory through the rest of the year.

By 2:00pm EST spot gold rose $13 to $1215, while spot silver surged more than1% to $17.14.

Source: KitcoNews