Gold Softens on Prospects of Fed Rate Hikes as Brent Tops $100
Spot gold rose 0.1% to $4,080.79 an ounce as traders weighed oil-driven inflation risks against the Fed’s rate path.
- On Friday, gold traded around $4,080 an ounce as traders balanced rising oil prices against uncertainty regarding next week's Federal Reserve policy meeting.
- Brent crude surged 7% on Thursday, breaking $100 a barrel, after President Donald Trump promised "major military punishment" for Iran and Houthi allies following Red Sea strikes.
- Technical supports held near the $4,000 level due to dip-buying, but Bart Melek, global head of commodity strategy at TD Securities, said higher interest rates could push bullion down to $3,900.
- Traders are pricing in an 81% chance of a September rate hike at next week's Federal Reserve meeting, as elevated oil prices stoke inflation concerns.
- Investors see potential for ETFs to re-enter the market on expectations that the Fed will resume cutting rates next year, supporting long-term gold demand.
15 Articles
15 Articles
Future gold contracts closed at high this Friday (24), recovering part of the losses on the eve, amid falling oil prices and investors' caution before the Federal Reserve (Fed, the United States central bank) monetary policy decision next week. At the close, the gold delivery scheduled for August rose 0.50%, quoted at $4,070.80 per ounce-troy, at Comex, metal division of the New York Mercantile Exchange (Nymex). The movement came after the sharp…
This article was originally published on Cedarnews.net. For more exclusive news and reports, visit our website. Gold prices continued their decline on Friday, after falling 2% in the previous session, as the return of Brent crude oil prices to above $100 a barrel fueled inflation concerns. The rise in oil prices also reinforced expectations of a US interest rate hike ahead of the Federal Reserve's monetary policy meeting next week. As of 07:33 A…
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Gold softens on prospects of Fed rate hikes as Brent tops $100
Gold extended losses on Friday after falling 2% in the previous session, as Brent crude’s move back above $100 a barrel stoked inflation concerns and strengthened the case for higher interest rates ahead of a Federal Reserve policy meeting next week. Spot gold eased 0.5% to $4,027.54 per ounce by 0523 GMT, with prices down more than $130 from a two-week high hit on Wednesday. US gold futures for August delivery were 0.5% lower at $4,029.60. Bull…
Gold Holds Gain as Dip-Buying Counters Inflation Fears From War
Gold held gains on dip-buying even as hostilities in the Middle East pushed oil prices to multiweek highs, rekindling concerns that US inflationary pressure could prompt the Federal Reserve to raise interest rates.
Gold Holds Gain as Traders Weigh Impact of Oil Risks on Rates
The price of gold has started the session on Thursday, July 23, below $4,100 an ounce, a threshold that it had managed to sustain for most of the month. The price of precious metal moved around $4,050 in COMEX, dragged by a cross of forces that divides investors: the risk of inflation more persistent than expected and the demand for shelter assets in the face of the increase of global geopolitical tension. The fall, although moderate, reflects a…
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