Raising interest rates, that is, the central bank of a country or region raises interest rates, increases the borrowing cost of commercial banks from the central bank, and then increases market interest. The purpose of raising interest rates includes reducing money supply, curbing consumption, curbing inflation, encouraging deposits and slowing down market speculation. Of course, raising interest rates can also be used as an indirect means to increase the value (exchange rate) of domestic currency or local currency against other currencies. \x0d\ The impact of the Fed's interest rate hike on gold: \x0d\ Other things being equal, the interest rate hike will benefit the US dollar. Can help the dollar appreciate relative to other foreign exchange. Because the profit of investing in dollars increases, the demand for investing in dollars will increase and the price will rise. At the same time, the dollar and gold are negatively correlated. When the dollar is bullish, gold will be bearish. The US dollar is the pillar of the current international monetary system, and the US dollar and gold are the most important reserve assets. The strength and stability of the US dollar weakened the status of gold as a reserve asset and its function of maintaining value. \x0d\ For gold, if other conditions remain unchanged, it is a bad thing. First of all, as an investment, the dollar itself is a substitute for investing in gold. In addition, raising interest rates itself will reduce market liquidity and reduce demand for all other assets, including gold. However, the general interest rate hike is to cope with inflation, and gold investment is a good investment to prevent inflation, so we often see that gold rises and interest rate hikes are at the same time.