The price of gold fell on Wednesday as the
dollar recovered slightly, increasing the pressure on the dollar exchange rate
precious metal along with solid Treasury yields and an aggressive
inflation view of the head of the US Federal Reserve.
Spot gold fell 0.4% to $1,808.08 an ounce, with
0329 GMT. US gold futures fell 0.6% to $1,807.10.
Gold has been consolidating since late last week, but
the general direction is down, towards about $1,750, Ilya . said
Spivak, a currency strategist at DailyFX. “The question is when?
do we find a new momentum to take us there?” said Spivak.
The dollar rose higher after a three-session slide,
increasing the appeal of gold for investors with other
Gold is very focused on rates and the outlook for monetary money
policy, especially in the US,” Spivak said, adding that the
dollar wasn’t done rallying.
Fed Chair Jerome Powell promised on Tuesday that the U.S
central bank would raise interest rates as high as necessary to
kill a rise in inflation that he said threatened the foundation?
of the economy.
Benchmark yield on 10-year US Treasuries stable after a
strong rise in previous session, hurtful demand for
zero yield gold.
The Fed has raised its key rate by
three quarters of a percentage point this year, and on track
to increase it again in half percentage point increments on its
next two meetings in June and July.
Though viewed as an inflation hedge, precious metal is prone to:
rising US short-term and bond yields, which
increase the opportunity cost of keeping it.
Spot silver fell 0.7% to $21.46 an ounce, platinum
fell 0.6% to $945.37 and palladium fell 1% to
(Reporting by Bharat Govind Gautam in Bengaluru; Editing by
This post Gold falls as dollar checks slide, Fed chief hardens policy stance
was original published at “https://financialpost.com/pmn/business-pmn/gold-slips-as-dollar-checks-slide-fed-chief-hardens-policy-stance”