“Precious metals are languishing as the scorching dollar continues to look to retake recent highs and markets reset their bets on an ultra-tight Fed.said Han Tan, chief market analyst at Exinity.
Monetary policy hints offered at the upcoming global central bank conference will likely dictate gold’s next move, and prices could be dragged down towards $1,700 if the Fed sticks to its guns to beat the scourge of inflation with more large-scale rate hikesTan added.
Central bankers will gather this week for their annual retreat in Jackson Hole.Wyoming, and comments from the Fed chairman, Jerome Powellon Friday, will be watched carefully.
Gold is very sensitive to rate hikes, as it raises the opportunity cost of holding bullion, which does not earn interest. The dollar hit new five-week highs, making gold more expensive for buyers with other currencies.
In other precious metals, the silver in cash went up a 0.1% a u$s18,885 per ounce; the platinum fell 0.01%, to u$s868.40; and the palladium lost a 6.5%a $1,989.53.
Source: Ambito
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