Title: Gold Down, Investors Weigh Interest Rate Outlook
Jul 19, 2022 12:07AM ET
On Tuesday morning in Asia, gold fell. It is hovering near an 11-month low as investors assess the prospects for further monetary tightening and its impact on global growth.
As of 12:03 p.m. EDT, gold futures were down 0.19 percent to $1,706.95. The dollar, which usually moves inversely to gold, rose Wednesday morning.
Investors are watching the U.S. Federal Reserve meeting, due July 26-27, for information on how aggressively the Fed will act in raising interest rates.
Bloomberg Economics said the latest U.S. data reinforces officials' support for another 75 basis point hike.
The Fed may not have to tighten policy as aggressively as markets initially thought, but the rate hike cycle could continue until early next year.
The dollar weakened at the start of the trading week, but this may not be the top, meaning gold may struggle to climb above a level close to US $1,750.
In other precious metals, silver and palladium were unchanged, while platinum was down 0.2%.