Stronger dollar takes shine off gold as markets await news on interest rates
Federal Reserve chair Jerome Powell will participate in a conference today, while the European Central Bank is set to make an announcement
08 September 2022 - 07:51
byEileen Soreng
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Bengaluru — Gold prices slipped on Thursday, weighed down by a stronger dollar, while cautious investors awaited comments from US Federal Reserve chair Jerome Powell and interest rate decision by the European Central Bank later in the day.
Spot gold fell 0.2% to $1,714.99/oz by 4.03am GMT, after rising nearly 1% on Wednesday. US gold futures inched 0.1% lower to $1,725.50. The dollar index was steady near a two-decade high touched in the previous session.
“A lot of eyes are glued to what Powell will say tonight and whether there’s any view on what the Fed will do at the end of the month,” said Brian Lan, MD at Singapore-based dealer GoldSilver Central. Gold hasn’t really regained its shine as a safe haven, with liquidations seen in exchange traded funds (ETFs), and many investors are on the sidelines because of the Fed raising interest rates, Lan added.
Powell will participate in a discussion at Cato Institute conference later in the day, which could be his final public comments before the September 20-21 policy meeting. Fed officials said on Wednesday they are still not convinced the worst of the US inflation scare has passed, hinting at continuation of the central bank’s aggressive rate hikes.
The Fed is expected to lift its policy rate by another 50 or 75 basis points in September. Investors were also expecting a hefty rate increase from the European Central Bank to combat soaring inflation at its policy decision at 12.15pm GMT, followed by president Christine Lagarde’s news conference at 12.45pm GMT.
Spot silver fell 0.3% to $18.45/oz, platinum was down 0.5% at $861.94 and palladium eased 0.2% to $2,039.17.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Stronger dollar takes shine off gold as markets await news on interest rates
Federal Reserve chair Jerome Powell will participate in a conference today, while the European Central Bank is set to make an announcement
Bengaluru — Gold prices slipped on Thursday, weighed down by a stronger dollar, while cautious investors awaited comments from US Federal Reserve chair Jerome Powell and interest rate decision by the European Central Bank later in the day.
Spot gold fell 0.2% to $1,714.99/oz by 4.03am GMT, after rising nearly 1% on Wednesday. US gold futures inched 0.1% lower to $1,725.50. The dollar index was steady near a two-decade high touched in the previous session.
“A lot of eyes are glued to what Powell will say tonight and whether there’s any view on what the Fed will do at the end of the month,” said Brian Lan, MD at Singapore-based dealer GoldSilver Central. Gold hasn’t really regained its shine as a safe haven, with liquidations seen in exchange traded funds (ETFs), and many investors are on the sidelines because of the Fed raising interest rates, Lan added.
Powell will participate in a discussion at Cato Institute conference later in the day, which could be his final public comments before the September 20-21 policy meeting. Fed officials said on Wednesday they are still not convinced the worst of the US inflation scare has passed, hinting at continuation of the central bank’s aggressive rate hikes.
The Fed is expected to lift its policy rate by another 50 or 75 basis points in September. Investors were also expecting a hefty rate increase from the European Central Bank to combat soaring inflation at its policy decision at 12.15pm GMT, followed by president Christine Lagarde’s news conference at 12.45pm GMT.
Spot silver fell 0.3% to $18.45/oz, platinum was down 0.5% at $861.94 and palladium eased 0.2% to $2,039.17.
Reuters
JSE faces mixed Asian markets as traders wait for Fed speech
Market data — September 7 2022
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
Gold falls on stronger dollar, bond yields
Gold gains as dollar’s rally pauses
Gold holds steady as falling US jobs data casts doubt on Fed rate hikes
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.