Gold Drops More than 2% on US Rate-Hike Bets
Traders priced in a 70% chance of an October rate hike as higher Treasury yields and a firmer dollar pressured bullion, analysts said.
- On Wednesday, gold prices remained under pressure, trading near $4,300 an ounce as investors recalibrated for a sustained 'higher-for-longer' interest rate environment following the Federal Reserve's recent policy tightening.
- In mid-September, the Fed lifted its benchmark rate by 25 basis points to 3.75%-4.00%, with 16 of 18 policymakers indicating further hikes to combat persistent inflation.
- Rising Treasury yields across maturities have undermined bullion's appeal, while fluctuating oil prices continue to influence market sentiment amid the ongoing US-Iran conflict.
- Gold's safe-haven appeal faces challenges in high-rate environments, though silver has shown resilience due to industrial demand for solar and grid infrastructure.
- Investors are monitoring upcoming US economic data, including non-farm payrolls and personal consumption expenditure figures, for signals on whether the central bank will maintain its restrictive stance.
260 Articles
260 Articles
Gold Trades Near Seven-Week Low as Rate-Hike Pressure Mounts
Gold edged higher after touching a more than seven-week low on Monday as a selloff of US Treasuries stabilized, even as expectations remained high the Federal Reserve will keep tightening policy to rein in inflation.
While the price of gold broke record after record at the beginning of the year, the price of the precious metal is now well below record levels. Earlier this year, gold peaked at around $5,400 per troy ounce; now, only $4,140 remains. For a long time, the precious metal gleamed as a safe haven, but investors are abandoning gold en masse for government bonds. The culprit? Sharply rising capital market interest rates and increasing panic in the bo…
Precious metal has fallen by more than 10% since August, in parallel with the rise in oil and expectations of higher rates
Gold declines Rs 2,600 to Rs 1.5 lakh/10g; silver tumbles Rs 5,000 to Rs 2.32 lakh a kg
New Delhi, Sep 28 (PTI) Gold prices tumbled Rs 2,600 to Rs 1.5 lakh per 10 grams in the national capital on Monday, tracking a sharp selloff in global markets amid rising crude oil rates and a firm US dollar. The yellow metal of 99.9 per cent purity had closed at Rs 1,52,600 per 10 […]
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