The Fed Raised Rates, Yet Gold Is Still Rising!
The gold market has once again surprised investors. After the Fed raised its interest rate by 25 basis points to 3.75–4.00% on September 16, gold did not continue falling. Instead, it reversed higher. On September 17, XAUUSD gained around 1.6% and rose toward $4,330 per ounce, even though prices had fallen to approximately six-week lows just the day before.
At first glance, this reaction may seem illogical: higher interest rates usually strengthen the dollar and reduce gold’s appeal. But this time, the market reacted differently — and that is the key to understanding the current move.
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