Gold Slips as First Fed Rate Increase Since '06 Bolsters Dollar
- Bullion still trading above five-year low set this month
- Other precious metals also decline, led by silver futures
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Gold posted its biggest loss since March after the Federal Reserve’s first interest-rate increase in almost a decade strengthened the dollar, curbing the appeal of owning precious metals.
The U.S. central bank on Wednesday unanimously voted to raise borrowing costs by a quarter of a percentage point. Higher rates reduce the attractiveness of holding bullion, which doesn’t pay interest or give returns like assets such as bonds or equities.