Gold under pressure from dollar strength and Treasury yield
Gold prices traded at three-month lows on Thursday, coming under pressure from renewed strength in the dollar and Treasury yields after Federal Reserve Chair Jerome Powell said more interest rate hikes were likely.
Fears of more rate hikes also dented copper prices, while traders sold the red metal heavily on concerns over slowing global economic growth.
Speaking at a European Central Bank forum, Powell said that while the central bank has “come a long way,” there still stood the possibility that interest rates will rise further.
His comments pushed up the dollar and Treasury yields, while weighing on the outlook for non-yielding assets such as gold and other metals. Markets also began pricing in a greater possibility for a rate hike at the Fed’s next meeting in late-July.
Spot gold steadied at $1,908.85 an ounce, while gold futures fell 0.3% to $1,916.75 an ounce by 20:04 ET (00:04 GMT).
GOLD
BUY 1904-1906 💯💯
✅ TP1: 1910
✅ TP2: 1915
✅ TP3: 1920
🛑 SL: 1900
Fears of more rate hikes also dented copper prices, while traders sold the red metal heavily on concerns over slowing global economic growth.
Speaking at a European Central Bank forum, Powell said that while the central bank has “come a long way,” there still stood the possibility that interest rates will rise further.
His comments pushed up the dollar and Treasury yields, while weighing on the outlook for non-yielding assets such as gold and other metals. Markets also began pricing in a greater possibility for a rate hike at the Fed’s next meeting in late-July.
Spot gold steadied at $1,908.85 an ounce, while gold futures fell 0.3% to $1,916.75 an ounce by 20:04 ET (00:04 GMT).
GOLD
BUY 1904-1906 💯💯 ✅ TP1: 1910
✅ TP2: 1915
✅ TP3: 1920
🛑 SL: 1900
