The US gold price is now down to $10.00 an ounce from a high of $18.76 per ounce earlier this week, Bloomberg reported.
The drop comes after the Federal Reserve raised its benchmark interest rate to 1.75% on Wednesday.
As we reported earlier this month, gold futures were trading near $1,200 an ounce, up from a low of $1.15 per ounce on February 5.
The market has already recovered from a rally last week, and we are already seeing gold prices rebounding from a slump in the last two weeks.
In fact, gold prices are now up 17.9% from their February 16 lows, according to the Commodities Futures Trading Commission (CFTC).
At $10 per ounce, gold is now the highest-valued asset on the exchange, according the CBRC.
Gold futures have also risen sharply this week.
At the end of February, the CFTC reported that the price of gold had risen to $1 per ounce from $10 an ounce at the end on February 4.
Gold futures fell by over 10% on February 17, according, the CBrc.
But by the end to February 22, gold has risen more than 80% from its February 16 low, according data from the CFRC.
And by the middle of February it is trading above $12 per ounce.
Investors are starting to see gold prices as a safe investment, and are likely to continue to do so as the market moves closer to the new 1% rate.
If the price trend continues, we could see a correction as the Fed raises rates and a correction after that.
For now, the price is looking positive, but it is too early to tell whether this is an upward or downward trend.