Jun 23, 2022 12:37AM ET
By: AnalysisWatch
Gold fell Thursday morning in Asia as investors anticipated an aggressive rate hike after U.S. Federal Reserve Chairman Jerome Powell said the central bank was fully committed to lowering prices.
As of 12:32 p.m. EDT, gold futures were down 0.21 percent at $1,834.45 per ounce. The dollar, which usually moves in the opposite direction to gold, rose on Thursday morning.
Investors expect an aggressive rate hike after the Fed chairman's testimony before the Senate. On Wednesday, Powell said he was not ruling out a 100 basis point rate hike, adding that the central bank would take whatever steps were necessary to restore price stability.
After Fed Chairman Jerome Powell indicated overnight that a 1% increase is a real possibility, it's a reminder of the persistent pressure on gold prices from rising interest rates.
Powell is due to testify before the House of Representatives later in the day.
Gold is expected to follow the commodity complex lower. Gold is more likely to trade below $1,800 an ounce in the next two weeks than not.
Gold is a cryptocurrency for baby boomers. It has no meaningful industrial use and is a psychological store of value in the same way that cryptocurrencies were for the younger generation.
In other precious metals, silver has fallen 0.65%. Platinum rose 0.14% and palladium rose 0.69%.