Gold prices fell in European trade to near 29-month lows as global central banks continue to tighten monetary policies and increase interest rates, in turn hurting demand on non-yielding assets like gold. 

The Federal Reserve hiked interest rates by 75 basis points for the third meeting in a row to 3.25%, the highest since 2008.

The world's largest central bank asserted the path of policy tightening and rate hikes until March 2023 in an effort to rein in record inflation

Swiss National Bank decided at its September 22 policy meeting to increase interest rates by 75 basis points to 0.5%, returning to positive ground for the first time since 2011, matching analysts expectations, and it's the first such hike since 2007.

Gold Prices

Gold prices fell 1.1% to $1,655.67 an ounce, after rising 0.5% yesterday away from 29-month lows at $1,653 an ounce.

Gold prices rose as well yesterday amid mounting geopolitical tensions in Europe, after Russian President Vladimir Putin announced partial military mobilisation. 

The Federal Reserve

As expected the Federal Reserve hiked interest rates by 75 basis points for the third meeting in a row to 3.25%, the highest since 2008.

The Fed intends to maintain its bullish stance against inflation, raising rates to 4.5% by the end of the year, which means we have 125 basis points of rate hikes in the last two meetings of the yer. 

The Fed is aiming  for the neutral 4.75% level for interest rates, which means raising rates by just 25 basis points in 2023. 

Swiss National Bank

Swiss National Bank decided at its September 22 policy meeting to increase interest rates by 75 basis points to 0.5%, returning to positive ground for the first time since 2011, matching analysts expectations, and it's the first such hike since 2007.

Global Interest Rates

Bank of England is expected to increase interest rates by 50 basis points today to 3.25%, the seventh hike in a row. 

Higher rates hurt non-yielding assets, such as gold futures. 

The SPDR

Gold holdings at the SPDR Gold Trust fell 1.16 tones yesterday, the fourth decrease in a row, to a total of 952.16 tones, the lowest since March 2020. 

Yen extended its losses against dollar on Thursday, trading below 145 for the first time in 24 years as the Bank of Japan held on to its ultra-easy monetary policies to support the economy. 

US 10-year treasury yields are now trading near 11-year highs after the Federal Reserve's decision to hike interest rates by 75 basis points to 3.25%, the highest since 2008.

As US yields surged, dollar gained gained ground against yen as the yields gap between the US and Japan widens. 

USD/JPY rose 1.3% today to 145.90, the highest since August 1998, with a session-low at 143.50. 

Swiss National Bank decided at its September 22 policy meeting to increase interest rates by 75 basis points to 0.5%, returning to positive ground for the first time since 2011, matching analysts expectations, and it's the first such hike since 2007. 

Sterling fell in European trade to 37-year lows against dollar, sharpening its decline for the third straight session ahead of Bank of England's monetary policy decisions. 

Dollar hit fresh 20-year highs against major rivals after the Federal Reserve hiked interest rates ti 2008 highs, while preparing for more rate hikes until March 2023. 

GBP/USD fell over 0.4% on Thursday to 1.1212, the lowest since 1985, after losing 1% yesterday due to complete dollar dominance over rivals. 

Bank of England

Bank of England is expected to increase interest rates by 50 basis points today to 2.25%, the seventh such increase in a row. 

The meeting comes amid warnings that the UK might already be in recession, with retail sales falling past estimates in August, as retail sales represent the consumer economy. 

The Dollar

The dollar index rose 0.3% on Thursday for the third straight session, hitting 20-year highs at 111.81 against a basket of major rivals. 

The gains accelerated after Russian President Vladimir Putin announced military mobilisation to support the war effort in Ukraine. 

Dollar also emerged as a favorite investment after the Federal Reserve hiked rates by 75 basis points for the third meeting in a row to 3.25%, the highest since 2008. 

The world's largest central bank asserted the path of policy tightening and rate hikes until March 2023 in an effort to rein in record inflation.