Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Gold Down, Rising U.S. Dollar and Treasury Yields Dent Safe-Haven Appeal

Published 04/05/2022, 11:57 PM
Updated 04/06/2022, 12:02 AM
© Reuters.

© Reuters.

By Gina Lee

Investing.com – Gold was down on Wednesday morning in Asia, easing as the dollar was boosted by hawkish comments from U.S. Federal Reserve officials, and U.S. Treasury yields hit multi-year highs.

Gold futures were down 0.23% to $1,923 by 11:56 PM ET (3:56 AM GMT). The dollar, which usually moves inversely to gold, edged up on Wednesday to a near two-year high as the Fed works towards quickly reducing its bloated balance sheet.

Kansas City Fed President Esther George said she was open to interest rate hikes of half a percentage point. For her part, Fed Governor Lael Brainard said she expected a combination of rate hikes and a rapid balance sheet runoff to bring U.S. monetary policy to a "more neutral position" later in 2022, with further tightening to follow as needed.

Other Fed policymakers will also speak throughout the week, starting with Philadelphia Fed President Patrick Harker later in the day, while St. Louis Fed President James Bullard, Atlanta Fed President Raphael Bostic, and Chicago Fed President Charles Evans will speak at separate events on Thursday.

Investors also await the minutes from the Fed’s latest meeting, which will be released later in the day. The minutes could provide clues to the pace of Fed interest rate hikes and quantitative tightening.

U.S. Treasury yields hit multi-year records during the session, with the focus firmly on the Fed's plan for unwinding its balance sheet. However, longer-term yields are moving more quickly and have partly reversed some of the U.S. curve’s recent inversions.

Meanwhile, the U.S. and its allies discussed further sanctions on Russia on Wednesday. The latest sanctions since Russia’s invasion of Ukraine on Feb. 24 are due to reports of civilian killings in northern Ukraine, described as "war crimes” by Ukrainian President Volodymyr Zelenskiy.

In other precious metals, silver inched down 0.1% and platinum was down 0.3%, while palladium was flat at $2,237.05.

Latest comments

No mention on hyperinflation hedges yet? Keeping all in the dark?
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.