COMEX Gold futures turned sharply lower yesterday. The metal tanked from a two month high above $1850 per ounce as the US Federal Reserve on Wednesday said it is likely to hike interest rates in March and reaffirmed plans to end its bond purchases that month in what US central bank chief Jerome Powell pledged will be a sustained battle to tame inflation. Citing elevated inflation and a strong labor market, the Federal Reserve indicated Wednesday that it plans to begin raising interest rates soon. The Fed left interest rates unchanged at near-zero levels as widely expected but said the Federal Open Market Committee expects it will soon be appropriate to raise the target range for the federal funds rate. In an effort to combat the economic impact of the coronavirus pandemic, the Fed has left interest rates at zero to 0.25 percent since March of 2020. Subsequent interest rate increases and an eventual reduction in the Fed's asset holdings would follow as needed, Powell said. Gold fell nearly two percent before some bargain buying emerged in the counter and currently trades down 0.75% at $1816 per ounce.

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