New Delhi: gold prices US Federal Reserve Chairman Jerome Powell said on Thursday that interest rates will rise further next year.
spot gold It fell 0.7% to $1,794.22 an ounce as of 0345 GMT, having retreated from more than a five-month high on Tuesday. us gold futures At $1,804.20, down 0.8%.
Powell said Wednesday that the Fed will hike rates more next year even as the US economy slips into a potential recession, paying a higher cost if the central bank does not get a firmer grip on inflation.
Christopher Wong, strategist at OCBC FX, said the Fed is weighing in on the bullion market and the outlook for gold hinges on what central banks, especially the Fed, plan to do from here.
“Roughly in 2023, I’m still in favor Sleep To trade higher but for the near term towards the end of the year, I would not rule out any profit taking or pullback in the prices.”
Gold has traditionally been considered an inflationary hedge, but high interest rates reduce the appeal of bullion by raising the opportunity cost of holding the non-yielding metal.
“We see room for some retracement of gold’s recent gains, but expect safe-haven buying to prop up prices,” ANZ said in a note. We subsequently raised our 2023 target to $1,900 an ounce Is.”
The dollar index was up 0.1%. A stronger dollar makes gold costlier for foreign buyers.
Marker participants now await rate-hike decisions from the Bank of England and the European Central Bank later in the day, with both expected to deliver 50-basis point rate hikes.
Traders will also scan upcoming economic data, including the weekly US jobless claims number due at 1330 GMT, for their potential impact on the Fed’s rate-hike strategy.
Silver fell 2.4% to $23.33 an ounce. platinum Gold fell 1.4% to $1,014.51 and palladium fell 0.7% to $1,903.29.
spot gold It fell 0.7% to $1,794.22 an ounce as of 0345 GMT, having retreated from more than a five-month high on Tuesday. us gold futures At $1,804.20, down 0.8%.
Powell said Wednesday that the Fed will hike rates more next year even as the US economy slips into a potential recession, paying a higher cost if the central bank does not get a firmer grip on inflation.
Christopher Wong, strategist at OCBC FX, said the Fed is weighing in on the bullion market and the outlook for gold hinges on what central banks, especially the Fed, plan to do from here.
“Roughly in 2023, I’m still in favor Sleep To trade higher but for the near term towards the end of the year, I would not rule out any profit taking or pullback in the prices.”
Gold has traditionally been considered an inflationary hedge, but high interest rates reduce the appeal of bullion by raising the opportunity cost of holding the non-yielding metal.
“We see room for some retracement of gold’s recent gains, but expect safe-haven buying to prop up prices,” ANZ said in a note. We subsequently raised our 2023 target to $1,900 an ounce Is.”
The dollar index was up 0.1%. A stronger dollar makes gold costlier for foreign buyers.
Marker participants now await rate-hike decisions from the Bank of England and the European Central Bank later in the day, with both expected to deliver 50-basis point rate hikes.
Traders will also scan upcoming economic data, including the weekly US jobless claims number due at 1330 GMT, for their potential impact on the Fed’s rate-hike strategy.
Silver fell 2.4% to $23.33 an ounce. platinum Gold fell 1.4% to $1,014.51 and palladium fell 0.7% to $1,903.29.