Gold, metals see quick rebound after US Fed increases policy rates by 0.25%

Standard gold in Mumbai was up 0.7% to close at Rs 30,525 per 10g

Gold and metal prices saw a quick rebound after the US Federal Reserve raised its policy rate on Wednesday by 0.25 per cent, also signalling two or three more increases to follow this year, of a similar magnitude, plus three more next year.

On Thursday, copper was trading higher on the London metal Exchange at $6,830 a tonne. Its recent three-month low was $6,702 a tonne. All base metals prices went up. Gold went below $1,315 an ounce on Wednesday but recovered to $1,330 an oz right after the Fed announcement.

On the Multi Commodity Exchange, copper, aluminium and nickel futures were