Gold prices rise by $21 post Fed Reserve decision

Gold prices rose today, Dec. 16, after the decisions of the Federal Reserve, amid the US dollar's decline from its highest level in three weeks.

The Federal Reserve decided to reduce its bond purchases by $30 billion per month, starting next January, instead of the previously announced $15 billion cut.

The bank raised its forecast for the growth of the US economy in 2022 from 3.8% to 4%, while raising its forecast for inflation this year from 4.2% to 5.3%.

Gold futures contracts for February delivery rose 1.2%, or $21, to reach $1,785.50 per ounce at 09:35am Makkah time. Spot price for the yellow metal rose 0.4% to reach $1,783.90 per ounce.

Elsewhere, silver futures for March delivery rose 3.1% to reach $22.22 an ounce. Spot price for platinum delivery rose 0.7% to reach $926.73, while palladium gained 3.8% to reach $1,662.50 per ounce.

The main dollar index, which measures the performance of the US currency against a basket of six currencies, fell 0.1% to 96.402 points.

The US will release last week's unemployment claims data later today, and expectations are for 196,000.