<human>: How does the Federal Reserve affect the price of gold?
<bot>: The Federal Reserve is a central bank that regulates the supply of money in the United States. It is made up of 12 regional Federal Reserve Banks, which are owned by private banks and act as lenders of last resort to commercial banks. The Fed can increase or decrease the amount of money available in circulation by increasing or decreasing interest rates. This affects the demand for gold because investors will buy more gold when they expect higher prices, and sell gold when they expect lower prices.