Gold fell on Wednesday as the dollar strengthened after US Federal Reserve officials raised doubts about an interest rate cut this year.
Gold futures fell 0.4% to $1,981.29 an ounce, their lowest on April 27 at 12:10 p.m. EDT (1610 GMT). US gold futures fell 0.4% to $1,984.90.
Jim Wyckoff, senior analyst at Kitco Metals, said the dollar’s jump, driven partly by Fed officials generally “faltering overall,” is weighing on metals markets.
He said the US debt default could be a bullish signal for gold, but most markets don’t think so.
President Joe Biden and top congressional Republican Kevin McCarthy said they would pursue talks to raise the debt ceiling.
The dollar index rose to a seven-week high, eroding appeal for bullion, which competes with the currency as a safe haven. [USD/]
Underscoring the Fed’s resolve to curb inflation, Chicago Fed President Auston Goolsby said on Tuesday that it was “too early to talk about rate cuts”, while Cleveland Fed President Loretta Mester said that Rates are not yet at a point where it can remain stable. ,
A Reuters poll sees the Fed holding rates steady this year. High-interest rates increase the opportunity cost of holding zero-yield bullion.
Meanwhile, traders see a roughly 67% chance the Fed will pounce on rates in June, with cuts still expected in the second half of the year.
UBS analyst Giovanni Stanovo said: “We still expect higher prices over the next 12 months, while gold is expected to reach $2,200 an ounce, but the next price jump may come when the Fed’s The trend is going to be more dovish.”
Silver fell 0.2% to $23.69 an ounce, platinum rose 1.5% to $1,072.99, while palladium fell 0.8% to $1,489.93.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – reuters,
Gold Slips as Dollar Rises on Hawkish Cues from Fed Officials
Last Update: May 18, 2023, 00:11 IST
The dollar’s jump, driven partly by Fed officials turning generally hawkish overall,” is weighing on metals markets, said Jim Wykoff, senior analyst at Kitco Metals.
Gold futures fell 0.4% to $1,981.29 an ounce, their lowest on April 27 at 12:10 p.m. EDT (1610 GMT). US gold futures fell 0.4% to $1,984.90.
Gold fell on Wednesday as the dollar strengthened after US Federal Reserve officials raised doubts about an interest rate cut this year.
Gold futures fell 0.4% to $1,981.29 an ounce, their lowest on April 27 at 12:10 p.m. EDT (1610 GMT). US gold futures fell 0.4% to $1,984.90.
Jim Wyckoff, senior analyst at Kitco Metals, said the dollar’s jump, driven partly by Fed officials generally “faltering overall,” is weighing on metals markets.
He said the US debt default could be a bullish signal for gold, but most markets don’t think so.
President Joe Biden and top congressional Republican Kevin McCarthy said they would pursue talks to raise the debt ceiling.
The dollar index rose to a seven-week high, eroding appeal for bullion, which competes with the currency as a safe haven. [USD/]
Underscoring the Fed’s resolve to curb inflation, Chicago Fed President Auston Goolsby said on Tuesday that it was “too early to talk about rate cuts”, while Cleveland Fed President Loretta Mester said that Rates are not yet at a point where it can remain stable. ,
A Reuters poll sees the Fed holding rates steady this year. High-interest rates increase the opportunity cost of holding zero-yield bullion.
Meanwhile, traders see a roughly 67% chance the Fed will pounce on rates in June, with cuts still expected in the second half of the year.
UBS analyst Giovanni Stanovo said: “We still expect higher prices over the next 12 months, while gold is expected to reach $2,200 an ounce, but the next price jump may come when the Fed’s The trend is going to be more dovish.”
Silver fell 0.2% to $23.69 an ounce, platinum rose 1.5% to $1,072.99, while palladium fell 0.8% to $1,489.93.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – reuters,