top of page

Title: Gold Down as Investors Expect Aggressive Interest Rate Hikes from the Fed

  • Writer: analysiswatch
    analysiswatch
  • Jun 23, 2022
  • 1 min read


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%.

Comments


2b94f773-a237-4da7-a599-6b42314ed9e6.png

Risk Disclosure: AnalysisWatch will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.
AnalysisWatch would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore AnalysisWatch doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.

bottom of page