Janet Yellen, Chair of the Federal Reserve, announce a 0.25% point raise in its key interest rate.
Source CNN: Fed Raises Key Interest Rate
The price of gold responded sharply with the Fed announcement, spiking more than $20 per ounce.
As can be seen in the chart above, the price jumped immediately with the announcement.
Gold stocks also saw a sharp intra-day price increase with the Fed’s announcement.
ARCA Gold Bugs Index March 15, 2017
At the moment, the Index is up over seven per cent, or $13.20, on the news of the quarter-point rate hike. The price of gold and gold stocks often correspond negatively to interest-rate increases, but the US Dollar also fell against the Canadian Dollar upon release of the Federal Reserve news.
