Gold fell below $2,000 on Tuesday after US economic data and hawkish comments from Federal Reserve officials suggested an interest rate cut could be delayed, while traders eyed US debt-limit talks.
Spot gold was down 1.2% at $1,996.29 an ounce by 11:50 a.m. EDT (1550 GMT), having touched its lowest in two weeks at $1,994.59.
US gold futures fell 1.1% to $2,000.20.
US retail sales grew less than expected in April, but the underlying trend was solid, with the dollar rising and 10-year Treasury yields hitting a two-week high. [USD/] [US/]
Richmond Fed President Thomas Barkin said he was “comfortable” with raising interest rates further to reduce inflation. Cleveland Fed chief Loretta Mester said the US central bank was not yet at a point where it could hold rates steady for some time.
It came after aggressive comments from other Fed officials on Monday.
“We need to see more signals of a pivot from the Federal Reserve and we haven’t seen a whole lot of it yet,” said Craig Erlam, a senior market analyst at OANDA.
High interest rates dull the appeal of non-yielding bullion, although it is considered a hedge against economic uncertainties.
But overall, said Philip Streble, chief market strategist at Blue Line Futures in Chicago, “traders may continue to buy any dips in gold prices” as they wait for this debt ceiling to be met.
Democratic President Joe Biden and top congressional Republican Kevin McCarthy will sit down at 3 p.m. EDT to try to make progress on a deal to raise the debt ceiling and avert an economically devastating default.
Spot silver slipped 1.9% to $23.65 an ounce. Platinum fell 0.4% to $1,060.56 and palladium shed 1.7% to $1,505.88.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
Gold Prices Plummet Below $2,000 as Economic Data, Fed Dampen Investor Confidence
Last Update: May 16, 2023, 23:45 IST
US gold futures fell 1.1% to $2,000.20 (Representative Image/AP)
Spot gold was down 1.2% at $1,996.29 an ounce by 11:50 a.m. EDT (1550 GMT), having touched its lowest in two weeks at $1,994.59.
Gold fell below $2,000 on Tuesday after US economic data and hawkish comments from Federal Reserve officials suggested an interest rate cut could be delayed, while traders eyed US debt-limit talks.
Spot gold was down 1.2% at $1,996.29 an ounce by 11:50 a.m. EDT (1550 GMT), having touched its lowest in two weeks at $1,994.59.
US gold futures fell 1.1% to $2,000.20.
US retail sales grew less than expected in April, but the underlying trend was solid, with the dollar rising and 10-year Treasury yields hitting a two-week high. [USD/] [US/]
Richmond Fed President Thomas Barkin said he was “comfortable” with raising interest rates further to reduce inflation. Cleveland Fed chief Loretta Mester said the US central bank was not yet at a point where it could hold rates steady for some time.
It came after aggressive comments from other Fed officials on Monday.
“We need to see more signals of a pivot from the Federal Reserve and we haven’t seen a whole lot of it yet,” said Craig Erlam, a senior market analyst at OANDA.
High interest rates dull the appeal of non-yielding bullion, although it is considered a hedge against economic uncertainties.
But overall, said Philip Streble, chief market strategist at Blue Line Futures in Chicago, “traders may continue to buy any dips in gold prices” as they wait for this debt ceiling to be met.
Democratic President Joe Biden and top congressional Republican Kevin McCarthy will sit down at 3 p.m. EDT to try to make progress on a deal to raise the debt ceiling and avert an economically devastating default.
Spot silver slipped 1.9% to $23.65 an ounce. Platinum fell 0.4% to $1,060.56 and palladium shed 1.7% to $1,505.88.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed)