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Gold Retreats After Fed Rate Hike; Hit 6-Month Highs Earlier

Published 12/19/2018, 01:12 PM
Updated 12/19/2018, 02:26 PM
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Investing.com - Gold prices fell into negative territory after the Federal Reserve raised interest rates Wednesday afternoon.

Futures of the yellow metal hit six-month highs before retreating on the Fed's announcement of a fourth quarter-point hike in interest rates this year.

By 2:11 PM ET (19:10 GMT), COMEX's benchmark February gold futures were down $3.50, or 0.4%, to $1,250.10 per troy ounce, after hitting a six-month high earlier at $1,262.10

The dollar index, a contrarian bet to gold and other commodities, remained down 0.2% at 96.377, after the Fed indicated it would take into account "a wide range of information" in deciding further rate hikes and its dot plot indicated expectations from the FOMC of two rate hikes in 2019, down from three.

The FOMC said in determining the timing and size of future rate adjustments, it "will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective."

"This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments," the FOMC statement added.

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