Gold fell as investors braced for an interest rate decision by the Federal Reserve that could put more pressure on the precious metal. Uncertainty about the Fed’s actions has left gold traders unsure of where the precious metal is heading.
Gold fell 0.9% on Monday, reversing earlier gains and adding to September losses as the dollar rose. Gold fell on Thursday after hitting its lowest price since 2020. Markets expect the Fed to raise rates by 75 basis points, although last week’s sharp inflation data prompted some traders to bet on a larger rate hike.
“If they were less hawkish, you would see gold bounce off the tide,” Phil Strable, chief market strategist at Blue Line Futures, said in an interview to see gold futures rise.”
Gold prices have fallen this year as the Federal Reserve’s aggressive monetary policy has weakened unprofitable assets and boosted the dollar. Meanwhile, Bundesbank President Joachim Nagel said the ECB is expected to continue raising interest rates in October and beyond. The London gold market was closed on Monday due to the state funeral of Queen Elizabeth II, which could reduce liquidity.
According to the US Commodity Futures Trading Commission, investors cut bullish rates as hedge funds trading on the Comex closed short positions last week.
Spot gold fell 0.2% to $1,672.87 an ounce at 11:54 am in New York. The Bloomberg Spot Dollar Index rose 0.1%. Spot silver fell 1.1%, while platinum and palladium rose.
Post time: Sep-20-2022