Gold Falls More Than 1% After Fed Hikes Interest Rates
· Business · Economic Times, LiveMint, Bloomberg
Gold prices dropped more than 1% on September 17, 2026, after the U.S. Federal Reserve raised interest rates by a quarter percentage point and signaled further hikes, pushing spot gold down to $4,240.10 per ounce. The Fed's decision to move the benchmark rate to the 3.75%-4.00% range came amid U.S. President Donald Trump's global import tariffs, an energy shock from the U.S.-Israeli war with Iran, and capital spending driven by the AI boom. Independent metals trader Tai Wong noted that the hawkish Fed stance and rising dollar are pressuring metals in the short term. U.S. gold futures for December delivery settled 1.3% higher at $4,387.50 as investors reacted to the rate decision.
Why it matters
Indian consumers and investors holding gold assets face lower valuations, while a stronger dollar makes gold more expensive for overseas buyers, impacting import costs and market sentiment.
Read the original report — Economic Times
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