Title: Gold Down Over an Expected Fed Hike
Jul 25, 2022 12:28AM ET
On Monday morning, gold fell in Asia as investors braced for a 75 basis point rate hike by the US Federal Reserve this week.
As of 12:25 p.m. EDT, gold futures were down 0.16 percent at $1,724.55.
Gold prices have fallen more than $350, or 16 percent, since topping the $2,000-an-ounce level in early March due to the Fed's aggressive rate hikes and the dollar's rally.
The dollar, which usually moves inversely to gold, fell Monday morning as the yield on the 10-year U.S. Treasury note hovered near an eight-week low.
The decline in U.S. yields on global recession concerns supported gold.
Today could see some indecision ahead of the Federal Open Market Committee meeting, which is likely to highlight the Fed's dilemma of fighting inflation at the expense of growth.
Investors are now watching the two-day US Federal Reserve meeting, which ends on Wednesday, and markets are pricing in a 75bp rate hike.
The European Central Bank joined its global counterparts to bring down soaring inflation and raised interest rates by 50 bps.
It is expected to take another hike until inflation falls to the 2% target level.
In other precious metals, silver fell 0.57%, platinum fell 0.20%, and palladium fell 1.59%.