Gold gets little relief as markets bet on July rate hike
Spot gold steadied at $1.933.63 an ounce, while gold futures fell slightly to $1,943.80 an ounce by 20:13 ET (00:13 GMT). Both instruments briefly slid below $1,920 and $1,930 an ounce, respectively, after Powell’s comments on Wednesday.
While the Fed chief gave no direct signals on the next rate hike, his stance on inflation remaining too high, coupled with hawkish signals from the Fed last week, reinforced expectations for an at least 25 basis point hike in July.
Fed Fund futures prices show that markets are pricing in an over 70% chance the Fed will raise rates in July.
The prospect of further increases in U.S. interest rates has weighed heavily on gold over the past month, given that it increases the opportunity cost of holding bullion.
While the yellow metal has held a trading range of between $1,930 and $2,000 for the past month, analysts expect a breakout towards the downside, especially as the dollar strengthens amid uncertainty over the Fed.
Other precious metals were also nursing steep losses this week. Platinum and silver futures steadied on Thursday after sinking to three-month lows in the prior session.
GOLD
SELL LIMIT 1943 - 1945 💯💯
✅ TP1: 1935
✅ TP2: 1930
✅ TP3: 1925
🛑 SL: 1952
While the Fed chief gave no direct signals on the next rate hike, his stance on inflation remaining too high, coupled with hawkish signals from the Fed last week, reinforced expectations for an at least 25 basis point hike in July.
Fed Fund futures prices show that markets are pricing in an over 70% chance the Fed will raise rates in July.
The prospect of further increases in U.S. interest rates has weighed heavily on gold over the past month, given that it increases the opportunity cost of holding bullion.
While the yellow metal has held a trading range of between $1,930 and $2,000 for the past month, analysts expect a breakout towards the downside, especially as the dollar strengthens amid uncertainty over the Fed.
Other precious metals were also nursing steep losses this week. Platinum and silver futures steadied on Thursday after sinking to three-month lows in the prior session.
GOLD
SELL LIMIT 1943 - 1945 💯💯 ✅ TP1: 1935
✅ TP2: 1930
✅ TP3: 1925
🛑 SL: 1952
