Hike rates

Gold prices slip on fears the Fed will hike rates more aggressively

Gold prices fell on Thursday morning as bullion’s outlook was hurt by fears that the US Federal Reserve will hike interest rates more aggressively this month to combat soaring global warming. ‘inflation.

Spot gold fell 0.24% to $1,726.92 an ounce at 9:08 a.m. UAE time.

In the United Arab Emirates, 24K was trading at Dh209.25 per gram when the market opened on Thursday. While 22K, 21K and 18K were trading at Dh196.75, Dh187.5 and Dh160.75 per gram, respectively.

Data released on Wednesday showed annual consumer prices in the United States jumped 9.1% in June, the biggest rise in more than four decades.

A rising dollar sent gold prices to a near-year low on Wednesday after the inflation report, but a pullback in the greenback helped bullion rally strongly and end the session slightly. higher.

Jeffrey Halley, Senior Market Analyst at Oanda, believes that a correction in the US Dollar is underway, therefore some short-term relief may also come to gold, allowing it to recover somewhat.

“Gold appears to be trying to draw a temporary low in the $1,707.00 area, with $1,700 and longer-term support at $1,675 an ounce looking safe at the moment. A failure of 1 $675 still signals more pain ahead, however. Gold has resistance at $1,745, now a double top. This is followed by $1,780 and $1,800, its June downtrend line” , Halley said.

“The CPI release generated volatility but no direction,” said Ilya Spivak, currency strategist at DailyFX, saying markets were now likely expecting the Fed to preload rates more, not necessarily to tighten further overall, but said gold was still trending down. prospects.

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