Raising interest rates is the behavior of the central bank of a country or region to raise interest rates, which increases the borrowing cost of commercial banks to the central bank, and then forces the market interest rate to increase.

The purpose of raising interest rates includes reducing money supply, curbing consumption, curbing inflation, encouraging deposits and slowing down market speculation. Raising interest rates can also be used as an indirect means to increase the value (exchange rate) of domestic or local currencies against other currencies.

Why did the Fed raise interest rates?

Control inflation; Accelerate economic development, keep the long-term growth of the total amount of money and credit consistent with the long-term potential growth of the economy, thus effectively promoting the goals of full employment, price stability and moderate long-term interest rates.

What impact does the Fed's interest rate meeting have on the gold market?

The price of gold is based on the dollar, so the trend of the dollar has a great influence on the trend of gold. Generally, after the Fed raises interest rates, it will increase the attractiveness of the US dollar to market investors, causing a large amount of market investment funds to flow in, which is likely to increase the trend of the US dollar, while the funds flowing out of the gold market are likely to enter the US dollar market, leading to a high probability of the gold trend falling.

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