" /> Gold Trades Under Pressure Amid Hawkish Fed Expectation | Gold Silver Reports
Saturday, October 22nd, 2016 1:39 AM
Breaking News

Home / Commodity News / Gold Trades Under Pressure Amid Hawkish Fed Expectation

Gold Trades Under Pressure Amid Hawkish Fed Expectation

Gold Trades Under Pressure Amid Hawkish Fed ExpectationGold Silver Reports — Gold trades under pressure amid hawkish Fed expectation — Gold prices were under pressure on Monday, touching a two-week low amid indications the Federal Reserve could raise interest rates as soon as next month.

Odds for a near-term rate hike mounted after Fed vice chairman Stanley Fischer said on Sunday that the U.S. economy was close to hitting the central bank’s targets for full employment and 2% inflation. Fischer’s speech was just the latest piece of hawkish rhetoric from top Fed officials. Last week, San Francisco Fed President John Williams, New York Fed Chief William Dudley and Atlanta Fed President Dennis Lockhart all said a September rate hike may be on the table.

The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose on Monday, pulling away from last week’s eight-week low of 94.05, as investors began to price in a greater likelihood that the Fed will raise rates this year.

A stronger U.S. dollar usually weighs on gold, as it dampens the metal’s appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies. In the week ahead, market players will turn their attention to a highly anticipated speech by Fed Chair Janet Yellen at the annual meeting of top central bankers and economists in Jackson Hole, Wyoming, for fresh clues on the timing of the next U.S. rate hike. — Neal Bhai Reports

Gold Trades Under Pressure Amid Hawkish Fed Expectation

About Anil Yadav

Check Also

Customers Hold on to Old Gold as Prices Fall

Gold Silver Reports — Customers Hold on to Old Gold as Prices Fall — The decline in gold prices …

We Make Ideas


Our site is objectively in letter and spirit, based on pure Technical Analysis. All other content(s), viz., International News, Indian Business News, Investment Psychology, Cartoons, Caricatures, etc are all to give additional ambiance and make the reader more enlightening. As the markets are super dynamic by very nature, you are assumed to be exercising discretion and constraint as per your emotional, financial and other resources. This blog will never ever create rumors or have any intention for bad propaganda. We report rumors and hear-say but never create the same. This is for your information and assessment. For more information please read our Risk Disclaimer and Terms of Use.

Technically Yours,

Team GoldSilverReports.com, New Delhi, INDIA