Gold surges again on Fed’s rate hike fears

Gold prices soared on Thursday trading above $1940 per ounce after the US Federal Reserve decided yesterday to hike rate by 25 bps to 0.50% for the first time since 2018.

Fed’s chair Jerome Powell said that he expects six more rate hikes in 2022 and inflation rate to reach the peak during the second half of the current year.

It should be noted that US consumer price index (CPI) rose 7.9% in February (Y/Y), the highest 12-month increase since January 1982.

Spot gold prices rose by 1.6%, $31.3 to trade at $1940.1 per ounce by 1258 GMT.