- The Federal Reserve's policymaking committee raised its key interest rate Wednesday from 1.25% to 1.50%.
- The dollar fell following the decision, and gold spiked.
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Gold spikes after the Fed hikes rates
Gold prices rose Wednesday after Federal Reserve officials raised its fed funds rate 25 basis points to a range between 1.50% and 1.75%.
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Gold is rallying Wednesday, up 1.73% at $1334 an ounce, after the Federal Open Market Committee raised its benchmark interest rate 25 basis points to a range between 1.50% and 1.75%.
The dollar fell after the Fed's decision as the central bank signaled that there will be two more rate hikes this year, drawing more investors toward gold. Some market participants had speculated the Fed could turn a bit more hawkish and suggest a fourth rate hike in 2018.
Gold is up 1.18% this year.
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