By Ira Iosebashvili
Gold prices reversed gains in aftermarket trading, after the Federal Reserve said it will raise interest rates by another quarter-percentage point and signaled it could lift them at a faster clip this year.
Gold for August delivery was recently down 0.1% at $1,297.60 a troy ounce in electronic trading. Prices closed up 0.2% at $1,301.30 a troy ounce in regular trading on the Comex division of the New York Mercantile Exchange.
Officials penciled in a total of four rate increases for this year, up from a projection of three increases at their March meeting. Expectations of higher rates tend to weigh on gold, which is denominated in the U.S. currency and becomes more expensive to foreign investors when borrowing costs rise.
The latest increase, the second this year, will bring the benchmark federal-funds rate to a range between 1.75% and 2%.
In base metals, copper prices were up 0.1% at $3.2450 a pound.
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