Gold prices tumble on Fed interest rate decision

Gold prices tumbled today, Dec. 15, amid the rise of the US dollar following the Federal Reserve's decision, while eyes are on more global central bank decisions.

Gold futures for February delivery contracted by 0.89% to $1,802.20 an ounce at 10:28 am Makkah time, with spot prices also down 0.83% to $1,792.44 per ounce.

Likewise, silver futures for March delivery shed 2.72% to $23.48 an ounce as the spot price of platinum decreased 1.67% to $1,011.57 per ounce. Further, the spot price of palladium plummeted 0.61% to $1,905.02 an ounce.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.3% to 103.92 points.

On Dec. 14, the Federal Reserve announced the continued tightening of monetary policy, deciding on a 50-basis-point (bp) interest rate hike in interest rates. The central bank expected to increase rates to 5.1% next year in an effort to curb spiraling inflation.

Today, several global central banks' interest rate decisions are due to be issued. This includes the European Central Bank (ECB), the Bank of England and the Swiss National Bank. Forecasts suggest they will lift interest rates by 50 basis points, following in the Fed’s footsteps.