Gold Price News: Gold Proves Remarkably Resilient Despite Fed Hikes

Gold is remaining remarkably perky despite the near certainty of the Federal Reserve implementing another interest rate hike when the committee meets next week. 

Even though the macroeconomic environment looked set to provide a challenging scenario for gold, lingering fears over the true health of the global economy have kept the precious metal well supported with the price pushing up towards $2,000 an ounce.

How long gold can continue to trade at such high levels remains to be seen with the reaction to next week’s Fed rate decision a key staging post for gold’s long-term durability. Considering that another increase is priced in already, gold may yet prove able to shrug off the latest hike but if there is an indication in the press conference and supporting commentary that further hikes are still likely, then gold could fall sharply.

For now, gold continues to confound by remaining so resilient but it would take a brave investor to see further upside potential for the price. 

Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience in writing about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News. 

As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewable energy and the challenges of avoiding greenwash while investing sustainably.

This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.