“In view of realised and expected labour market conditions and inflation, the committee decided to raise the target range for the federal funds rate to 3/4 to 1%,” the FOMC said.
According to Bloomberg, Fed chair Janet Yellen told reporters that another two quarter-point rate rises were likely this year, followed by three next year.
Early reports out of the Netherlands also had current Prime Minister Mark Rutte beating far-rich candidate Geert Wilders in the Dutch election.
Spot gold jumped to $US1220 an ounce following the decision, and remains at $1218/oz.
The Australian dollar strengthened to back above 77c, keeping the local spot gold price at $A1581.10/oz.
Gold’s jump upstaged a strong performance by the Metal Bulletin iron ore spot price.
The 62% fines price rose by 3.2% or $US2.79 to $90.93 per tonne, its first time over $90/t since March 3.
It comes after RBC Capital Markets yesterday increased its 2017 average price to $84.50/t.
Zinc was also strong, rising by 2.1% to $2788.50/t.
Nickel and tin were slightly lower.
[amcsv id="225330" type="commodities"]
