'Tough pill to swallow': Gold price plunges as markets bet on Fed's June rate outcome economy dollar gold
The gold market saw another day of significant losses Thursday, with prices dragged down nearly $30 due to a stronger U.S. dollar, improved risk sentiment, and investors not ruling out another Federal Reserve rate hike in June.
However, many Fed speakers that followed Powell remained relatively hawkish, forcing markets to recalibrate the June rate expectations and push back on the year-end rate cut hopes. And this week's macro data supports this view, noted Streible."It pushes out expectations when the Fed will initiate the first rate cut. And that is weighing on gold," he said.
The precious metal is looking at some sideways price action as there is no catalyst to take prices above $2,000 an ounce right now unless we see a high risk of default, Cholly added.
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