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Title: Gold Up over Weakening Dollar as Expectations of Aggressive Fed Hike Recede


Jul 28, 2022 11:38PM ET


By: AnalysisWatch


Gold prices rose Friday morning in Asia as expectations of aggressive interest rate hikes by the U.S. Federal Reserve receded.


Gold futures were up 0.40% at $1,757.30 an ounce by 11:37 PM ET, while the dollar, which normally moves in the opposite direction to gold, edged lower on Thursday morning. The dollar has spent most of July hovering near 20-year highs.


U.S. gross domestic product, released on Thursday, fell at a 0.9% annual rate in the second quarter, reinforcing gold's safe-haven appeal.


As expected by the markets, the Federal Reserve on Wednesday raised interest rates by 75 basis points to 2.25-2.5%. In his press conference, Fed Chairman Jerome Powell was less aggressive, stating that the final decision on a rate hike at the September meeting would depend on incoming economic data.


Elsewhere, U.S. President Joe Biden and Chinese President Xi Jinping are planning a face-to-face meeting, the first face-to-face between the two men since Biden became president.

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