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Gold Loses Steam, Copper Sinks Further as Hawkish Fed Boosts Dollar By

© Reuters.

By Ambar Warrick– Gold prices capitulated recent gains, while copper extended losses on Thursday after an interest rate hike and hawkish message from the Federal Reserve boosted the dollar and weighed heavily on metal markets.

Bullion prices initially showed some resilience after the Fed’s decision, bouncing from over two-year lows as investors saw the metal as heavily oversold. But it had since capitulated most of those gains and was trading in a flat-to-low range. 

fell 0.3% to $1,669.56 an ounce, while fell slightly to $1,674.45 an ounce by 20:01 ET (00:01 GMT). Both instruments rose around 0.5% on Wednesday.

Metal markets shared a similar degree of volatility as most other asset classes after the by 75 basis points, as expected. But the central bank struck a more hawkish than expected tone on the future path of rates, cementing expectations that U.S. rates will end the year well above…

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