He gold it falls this Thursday and remained close to the three-month minimum touched the day before, after the president of the United States Federal Reserve, Jerome Powell, reiterate that more interest rate hikes are likely to come to control inflation.
Spot gold was down 0.3% at $1,927.38 an ounce, a day after hitting its lowest since March 17. Gold futures in the United States were down 0.4% at $1,937.60.
“Gold price action is less of an arrow and more of a feather as it responds negatively to the latest hawkish tone coming out of the Fed,” said independent analyst Ross Norman, adding that bullion still found some good buying in around the $1,920 level.
Powell’s definitions that changed the market landscape
Powell told lawmakers on Capitol Hill on Wednesday that further rate hikes are “a pretty good guess” of where the Fed is headed. Atlanta Fed President Raphael Bostic, however, said the Fed could having to wait beyond their July meeting to decide on further increases. The dollar touched lows of more than a month.
Markets see a 74% chance of a rate hike in July, with cuts likely only after 2024, according to CME’s Fedwatch tool, as yields on benchmark 10-year US Treasuries neared highs of session.
Although gold is seen as a hedge against inflation, high rates to curb price pressures weigh on the attractiveness of this non-interest-bearing asset.
In other precious metals, silver stabilized at $22.64 an ounce after touching its lowest since March 22; platinum was up 0.4% at $945.01; and palladium was down 0.6% at $1,339.69.
Source: Ambito
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