After Federal Reserve Chair Jerome Powell outlined the central bank’s justification for raising interest rates on Wednesday, gold prices began to recover.
Although after the Fed raised interest rates by 75 basis points for the third time in a row, spot gold initially declined.
The central bank also said it would keep raising rates after they reach their present level.
U.S. gold futures increased 0.66% to 1,682.2, while spot gold was recently up 0.6% at $1,673.69 per ounce.
Although gold is regarded as a hedge against geopolitical risk and inflation, owning non-yielding bullion becomes more expensive as interest rates rise.
