Gold prices rose Wednesday after the Federal Reserve approved the largest interest-rate increase since 1994.
Most-actively traded gold futures rose 1.4% to $1,838.10 a troy ounce in after-hours trading. They finished Wednesday’s session up 0.3%. The VanEck Gold Miners ETF was recently up 2.5%.
“Gold may be the cleanest dirty shirt out there,” said Bill Herrmann, partner and co-founder at Wilshire Phoenix. Mr. Herrmann estimates that gold will climb to $2,000 by year-end.
Prices had climbed to near-record levels this year after Russia’s invasion of Ukraine, which prompted buying by investors looking for havens. Since then, investor sentiment has soured as the war has dragged on and the prospect of rising rates has made yield-bearing assets more attractive.