Title: Gold Down over Expectations of More Fed Interest Rate Hikes
Jun 13, 2022 11:26PM ET
Gold prices fell in Asia on Tuesday morning, hovering near a four-week low. Wall Street entered a bear market as investors worried about a recession that could be caused by more aggressive interest rate hikes by the Federal Reserve.
At 11:17 p.m. EDT, gold futures were down 0.17 percent at $1,828.35 an ounce. The dollar, which usually moves inversely to gold prices, weakened slightly Tuesday morning.
Asian markets fell after Wall Street entered a bear market. Bond yields hit a 20-year high, dampening demand for the low-yielding yellow metal.
Goldman Sachs bank predicts that the Fed will raise interest rates by 75 basis points at its June meeting on Wednesday. A 75 basis point increase would be the largest since 1994.
As for other central banks, the Bank of England will announce its monetary policy decision on Thursday.
The Bank of Japan (BOJ) will announce its monetary policy decisions on Friday. While the yen-dollar exchange rate fell to a 24-year low, Japanese Finance Minister Shunichi Suzuki reiterated on Tuesday that the government will coordinate with the BOJ.
Among other precious metals, platinum fell 0.93%, while palladium rose 0.27%.