US EditionGold Slips 3% as Hawkish Fed Comments Spark Market Sell-Off
Market expectations for a December 25 basis-point rate cut dropped to 53%, leading to a 3% gold price decline amid a broad sell-off following Fed officials' hawkish remarks.
- On Friday, gold prices dropped more than 3% after hawkish remarks from U.S. Federal Reserve officials dimmed hopes for a December rate cut.
- CME Group's FedWatch tool showed market odds for a 25 basis-point rate cut next month fell to 53% from 64% earlier this week as more Fed policymakers adopted caution, while the prolonged U.S. government shutdown created a major data gap.
- U.S. gold futures for December delivery fell 2.24% to $4,100.40, and spot gold swung intraday, dropping 1.82% to $4,095.16, as liquidations hit safe-havens, said Fawad Razaqzada.
- Equity markets tumbled and physical demand across major Asian markets remained subdued this week, leaving fewer buyers to cushion the downturn as gold held above the $4,000-per-ounce support level.
- Despite long-term support from central-bank buying and inflation concerns, upcoming U.S. inflation, employment and growth data will drive volatility as higher-for-longer rates and a stronger U.S. dollar weigh on non-yielding gold.
13 Articles
13 Articles
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Gold and Silver Prices Slide as Hawkish Fed Signals and Easing Safe-Haven Demand Weigh on Bullion
Gold and silver prices fell sharply in global markets on Friday after a series of hawkish comments from US Federal Reserve officials dampened expectations of a December rate cut. The shift in sentiment pushed investors away from non-yielding assets like bullion. The resolution of the US government shutdown further eased economic uncertainty, reducing the safe-haven demand that had recently supported gold and silver. In India, however, domestic p…
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