: Gold prices settle higher, head lower after the Fed rate decision
Gold futures settled higher on Wednesday, then moved lower in electronic trading shortly after the Federal Reserve announced a decision to leave its benchmark fed funds rate unchanged at a 5% to 5.25% range. “We believe that the Fed is playing it safe here, and they have balanced their action with the statement,” said Naeem Aslam, chief investment officer at Zaye Capital Markets. “It is likely that once the dust is fully settled, this equity market will begin to roar again, and we expect the dollar index to move lower, which means the current weakness in the gold price could be an opportunity.” August gold GCQ23 was at $1,958 an ounce shortly after the announcement. That follows a settlement at $1,968.90 an ounce, up $10.30, or 0.5%, for Wednesday’s session.
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