Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Gold Prices See Weekly Losses as Fed Rate Risks Rise

Commodities Aug 18, 2022 11:26PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
XAU/USD
-0.15%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Gold
-0.24%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Copper
+1.59%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Silver
-0.89%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
PL
+0.37%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Ambar Warrick

Investing.com-- Gold prices fell slightly on Friday, and were set to end the week lower as hawkish signals from the U.S. Federal Reserve on the path of U.S. interest rates drove up the dollar.

Spot gold fell 0.1% to $1,756.59 an ounce by 23:03 ET (03:03 GMT), while gold futures dipped by a similar amount to $1,769.70. Both instruments were set to lose about 2.6% this week, having fallen for all five sessions.

The dollar index was boosted by comments from Federal Reserve officials that the bank would stick to a sharp pace of rate hikes this year to bring down runaway inflation. St. Louis Fed President James Bullard on Thursday said he currently supports a third consecutive 75 basis point (bps) rate hike in September.

San Francisco Fed President Mary Daly also flagged a potential 50 to 75 bps hike during the Fed’s next meeting, with a target of keeping rates above 3% by the year-end.

Their comments came after the minutes of the Fed’s July meeting showed on Wednesday that most members of the central bank supported raising rates substantially to combat inflation.

This put the dollar on course to gain for the week, pressuring most metal prices. Rising interest rates this year have seen the dollar largely overtake gold as a preferred safe haven, sapping the yellow metal of its gains made during the onset of the Russia-Ukraine crisis.

Platinum futures fell 0.1% on Friday, while silver shed 0.8%.

Among industrial metals, copper futures fell slightly on Friday, and were set to lose over 1% this week after weak industrial production data from China.

China is the world’s largest importer of the red metal, and is currently struggling to shore up factory activity after a series of COVID-19 lockdowns.

Trouble in the country’s massive real estate market also spells more headwinds for the economy, which is likely to weigh on the prices of copper and other industrial metals in the medium term.

Gold Prices See Weekly Losses as Fed Rate Risks Rise
 

Related Articles

Oil near $90 as OPEC+ considers output cut
Oil near $90 as OPEC+ considers output cut By Reuters - Sep 29, 2022 1

By Ahmad Ghaddar LONDON (Reuters) -Oil prices steadied on Thursday as indications that OPEC+ might cut output were tempered by a stronger dollar and weak economic outlook. Brent...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
jason xx
jason xx Aug 19, 2022 5:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ridiculous Bullard is a joke. He could say 1% hike that doesn't mean it is going to happen. He Is wrong everytime.
Brad Albright
Brad Albright Aug 19, 2022 5:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Everytime? Wow. That's bad.
mark johnson
mark johnson Aug 19, 2022 2:20AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Gold will be down a bit longer but just like in 2008 you won’t find it when it jumps in December And January when people run away from equities and try to buy Gold.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email