🏃 Grab this Black Friday offer early. Get up to 55% off InvestingPro now!CLAIM SALE

Gold Down over Expectations of More Fed Interest Rate Hikes

Published 06/14/2022, 11:28 AM
© Reuters
XAU/USD
-
GS
-
GC
-
DXY
-

By Zhang Mengying

Investing.com – Gold was down on Tuesday morning in Asia and hovered near a four-week low. Wall Street entered a bear market as investors are worried about a recession caused by more aggressive interest rate hikes from the U.S. Federal Reserve.

Gold futures edged down 0.17% to $1,828.35 by 11:17 PM ET (3:17 AM GMT). The dollar which normally moves inversely to gold, inched down on Tuesday morning.

Asian markets tumbled after Wall Street entered a bear market. Bond yields hit a two-decade high, which dented the demand for the non-yield yellow metal.

Goldman Sachs (NYSE:GS) forecast a 75-basis point (bp) interest rate hike from the Fed’s June policy meeting on Wednesday. A 75-bp hike would be the biggest since 1994.

For other central banks, the Bank of England will hand down its policy decision on Thursday.

The Bank of Japan (BOJ) will hand down its policy decisions on Friday. As the yen fell to 24-year lows to the dollar, Japanese Finance Minister Shunichi Suzuki reiterated on Tuesday the government will coordinate with the BOJ.

In other precious metals, silver X %. Platinum fell 0.93% while palladium climbed 0.27%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.