Gold prices drops to lowest in two years on Fed rate hike bets. gold inflation usa
“The gold market has clearly priced in a more aggressive US Federal Reserve ahead of next week’s meeting, reflecting the central bank’s determination to fight inflation,” Carsten Menke, Head Next Generation Research at Julius Baer,While the consensus is for a 75-basis-point hike, some are calling for a 100 bps increase, which is partly reflected in the gold market, Menke said, adding that a 75 bps hike could thus come as a positive surprise for the gold market.
The dollar index, meanwhile, held near a two-decade peak as a surprise rise in August inflation reported earlier this week boosted bets for an even more aggressive monetary policy. This was later followed by mixed economic data that helped gold to briefly pare its losses, but did little to assuage the inflation concerns.
Applications for US unemployment insurance fell for a fifth straight week, suggesting demand for workers remains healthy despite an uncertain economic outlook. Retail sales unexpectedly rose in August, but the prior month’s number was revised sharply lower. Factory production rose slightly during the month, while total industrial production, including mining and utilities fell.
“Damage is being driven by the market pricing in a 1% rate hike next week and a terminal rate around 4.5%,” Ole Hansen, head of commodity strategy at Saxo Bank,
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Gold Technical Analysis: USD Strength Pushing Gold DownFor the second day in a row, XAU/USD gold prices fell, and thus pushed the most active gold futures contract to its lowest settlement in nearly two months.
Read more »
Gold Price Forecast: Megaphone advocates XAU/USD volatility above $1,690, US data, Fed in focusGold Price Forecast: Megaphone advocates XAU/USD volatility above $1,690, US data, Fed in focus – by anilpanchal7 Gold XAUUSD RiskAppetite Fed Inflation
Read more »
Gold Price Forecast: XAU/USD Back Below $1700 on Fed Rate Hike ExpectationsGold looks to test July swing lows today after yesterday’s U.S. inflation ‘hangover effect’ seems to have dissipated. Get your market update from WVenketas here:
Read more »
Gold price holds steady as traders weigh Fed rate pathThe Fed’s hawkish monetary tightening has caused the precious metal to trend lower this year.
Read more »
Gold Price Forecast: XAU/USD declines towards $1,690 on hawkish Fed bets, US Retail Sales eyedGold Price Forecast: XAU/USD declines towards $1,690 on hawkish Fed bets, US Retail Sales eyed – by Sagar_Dua24 Gold XAUUSD Fed Inflation RetailSales
Read more »
Billionaire Catsimatidis warns the Fed will 'destroy' the US if they keep raising ratesRed Apple Group Chairman and CEO John Catsimatidis discusses the Biden administration's attacks on the fossil fuel industry and the Fed's handling of inflation.
Read more »