Fed delivers first rate hike in three years, lifts benchmark to 4.00%

The Fed's first rate hike in three years lifts the policy rate to 4.00% and the dot plot signals a likely additional hike this year (16/18). Higher real yields and a stronger rate path typically tighten financial conditions and raise the opportunity cost of holding non-yielding assets, pressuring gold. The mention of gold already dropping underscores immediate repricing across rates- and USD-sensitive markets.