Gold extends losses on Fed tightening outlook, dollar strength
Gold prices tumbled to a seven-month low on Thursday, nearing $3,985 per ounce, as a robust dollar and anticipation of Federal Reserve interest rate hikes weighed heavily. Traders are factoring in multiple rate increases this year, with a signific...
By Reuters |
BCCL
Gold prices extended losses on Thursday, hovering near the more-than-seven-month low hit a day earlier, as the dollar held firm on rising expectations of Federal Reserve interest rate hikes.
Bullion fell below the key $4,000-per-ounce level for the first time since November 2025 on Wednesday, pressured by a stronger dollar and expectations of Fed rate hikes.
Traders expect three Fed rate hikes this year and are pricing in an about 67% chance of a September increase, according to the CME FedWatch Tool. [FEDWATCH/]
The U.S. dollar advanced for a third straight day on Wednesday to hit a 13-month high, making gold more expensive for buyers holding other currencies.
U.S. Treasury Secretary Scott Bessent on Wednesday applauded Fed Chair Kevin Warsh's plan to reduce forward rate guidance, but said Fed policymakers need to keep an open mind on the inflation impact of the Iran conflict.
Investors await the U.S. Personal Consumption Expenditures data, the Fed's preferred inflation gauge, due later in the day, for further cues on monetary policy.
Lebanon and Israel are discussing a U.S.-backed proposal for Israeli forces to transfer some of the Lebanese territory invaded in their war with Hezbollah to Lebanon's military, officials on both sides said, in a possible step towards restoring Lebanese control of occupied territory.
Spot silver fell 0.2% to $57.33 per ounce, platinum lost 0.2% to $1,575.85, while palladium gained 0.3% at $1,170.25.
1230 US Consumption, Adjusted MM May
1230 US Core PCE Price Index MM, YY May
1230 US Durable Goods May
1230 US Initial Jobless Clm 20 Jun, w/e
FUNDAMENTALS
Spot gold was down 0.4% at $3,985.89 per ounce, as of 0043 GMT, after hitting its lowest level since November 2025 on Wednesday. U.S. gold futures for August delivery lost 0.2% to $4,001.60.Bullion fell below the key $4,000-per-ounce level for the first time since November 2025 on Wednesday, pressured by a stronger dollar and expectations of Fed rate hikes.
Traders expect three Fed rate hikes this year and are pricing in an about 67% chance of a September increase, according to the CME FedWatch Tool. [FEDWATCH/]
The U.S. dollar advanced for a third straight day on Wednesday to hit a 13-month high, making gold more expensive for buyers holding other currencies.
U.S. Treasury Secretary Scott Bessent on Wednesday applauded Fed Chair Kevin Warsh's plan to reduce forward rate guidance, but said Fed policymakers need to keep an open mind on the inflation impact of the Iran conflict.
Investors await the U.S. Personal Consumption Expenditures data, the Fed's preferred inflation gauge, due later in the day, for further cues on monetary policy.
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Lebanon and Israel are discussing a U.S.-backed proposal for Israeli forces to transfer some of the Lebanese territory invaded in their war with Hezbollah to Lebanon's military, officials on both sides said, in a possible step towards restoring Lebanese control of occupied territory.
Spot silver fell 0.2% to $57.33 per ounce, platinum lost 0.2% to $1,575.85, while palladium gained 0.3% at $1,170.25.
DATA/EVENTS (GMT)
1230 US Consumption, Adjusted MM May 1230 US Core PCE Price Index MM, YY May
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1230 US PCE Price Index MM, YY May 1230 US Durable Goods May
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1230 US GDP Final Q1 1230 US Initial Jobless Clm 20 Jun, w/e
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