Minneapolis Fed President Neel Kashkari said Tuesday that the U.S. economy is more likely to have a “soft landing.”
He gold falls this Wednesday at your lowest level in more than a month due to the rise of dollar, as the markets prepared for the prospect that the interest rates remain elevated for longer.
He spot gold lost 0.3% to $1,895.13, its lowest level since August 22. US gold futures fell 0.3% to $1,913.30.
Dollar and high rates: how it impacts gold and stocks
He dollar stood firm in 10 month maximums against its major peers, while Treasury yields traded high on the prospect of interest rates higher for longer in the United States.
The president of the Minneapolis Fed, Neel Kashkari, said Tuesday that the U.S. economy is more likely to have a “soft landing,” but there is also a 40% chance that the Federal Reserve have to raise rates “significantly” to beat inflation.
Nails interest rates Higher prices increase the opportunity cost of holding gold bars, which are quoted in dollars but do not yield interest.
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On Friday the personal consumption expenditure (PCE) index of the United States, the Federal Reserve’s preferred measure of inflation.
As a reflection of the sentiment of the investorsholdings in the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, They hit lows of more than four years.
Source: Ambito
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