Gold Price Drops As Fed Raises Rates But Turns Slightly Dovish For 2019

New York (Dec 19)  Gold prices are seeing some selling pressure following an expected dovish shift from the Federal Reserve, as it pares back its expectation for interest rate hikes in 2019.

The latest economic projections which shows that the central bank committee sees only two rate hikes next year, seeing an average target rate of 2.9%, down from September’s projections of 3.10%.

According to some analysts the price action in gold is a "buy the rumor sell the move" strategy. The Fed's dovish shift was in line with expectations, which pushed gold to a five-month high as the U.S. dollar lost momentum ahead of the release of the Federal Reserve monetary policy decision. February gold futures last traded at $1,250.40 an ounce, down 0.24%.

 The U.S. central bank also raised interest rates by 25 basis points pushing rates into a range between 2.25% and 2.50%. The Federal Reserve also remains optimistic on the U.S. economy going,

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