Sep 15 – The price of gold fell to a nearly two-month low on Thursday as prospects for more aggressive rate hikes by the Federal Reserve pushed the dollar higher.
* Spot gold was down 0.5% at $1,687.70 an ounce by 0925 GMT, having hit its lowest level since July 21. US gold futures were down 0.7% at $1,697.30.
* “The gold market has clearly priced in more aggressiveness from the US Federal Reserve ahead of next week’s meeting, reflecting the central bank’s determination to fight inflation,” said Carsten Menke, head of research next generation from Julius Baer.
* While the consensus is for a 75 basis point (bps) hike, some are calling for a 100 bps hike, which is partly reflected in the gold market, Menke said, adding that a 75 bps hike could be a positive surprise for the gold metal market.
* The dollar index held near its two-decade highs hit last week as a surprise rise in US inflation in August boosted bets on even more aggressive monetary policy from the Fed. A stronger dollar makes prices more expensive. gold, which is listed on the greenback, for foreign buyers.
* Gold, which does not pay interest, is very sensitive to rising interest rates in the United States, as it is disadvantaged compared to other assets that pay interest. Bullion is down more than $380 from its March high, when the Fed raised rates for the first time since 2018.
* Meanwhile, International Monetary Fund chief Kristalina Georgieva said on Wednesday that central bankers must be persistent in fighting widespread inflation.
* Among other precious metals, silver fell 1.4% to $19.42 an ounce, while platinum rose 0.1% to $906.40 and palladium fell 1.3% to $2,135. .41 dollars.
Samuel Edwards is the name you must have heard many times while reading reports related to Finance, that’s what he is good at. From Major Investments to Stock Market Updates, he got ’em all. Be ready to blow your mind by the mind-blowing reports of Finance World from Samuel Edwards.