Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Gold prices slip as Fed affirms aggressive policy stance

Economy May 26, 2022 02:42PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A saleswoman shows gold bangles to a customer at a jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Kolkata, India, May 3, 2022. REUTERS/Rupak De Chowdhuri

By Ashitha Shivaprasad

(Reuters) - Gold prices slipped on Thursday as the U.S. Federal Reserve's aggressive monetary policy tightening plan dimmed the metal's appeal, with additional pressure from a rebound in equities.

Spot gold fell 0.18% to $1,849.52 per ounce by 2:12 p.m. ET (1812 GMT). U.S. gold futures settled up 0.07% at $1,847.6.

Minutes of the Fed's May 3-4 policy meeting released on Wednesday highlighted most participants favouring additional 50 basis point rate hikes at the June and July meetings, although it was no surprise to the market.

"The minutes didn't change anything. The market has started to realise the Fed will continue to take robust measures to control inflation," said Bart Melek, head of commodity strategies at TD Securities.

"The tightening story is not over by any stretch of the imagination, and it's probably a very safe bet to say that the interest rate environment will continue to get more restrictive."

The yellow metal is highly sensitive to interest rate hikes, as it increases the opportunity cost of holding non-yielding bullion.

Gold prices are pressured in part by the stabilization of the U.S. stock indexes this week, said Kitco senior analyst Jim Wycoff in a note. [.N]

U.S. jobless claims fell last week, consistent with a labour market that remains tight amid strong demand for workers despite rising interest rates and tightening financial conditions.

Limiting the bullion's fall, the U.S. dollar hovered near one-month lows, while the U.S. 10-year Treasury yield also fell to lowest since April. [USD/] {US/]

"Gold seems to falter when it hits anything like a technical resistance and then you get long liquidation and profit taking. So this is the key issue for gold at the moment," independent analyst Ross Norman said.

In other metals, spot silver slid 0.2% to $21.92 per ounce, platinum rose 0.7% to $949.85 and palladium rose 0.2% to $2,010.26.

Gold prices slip as Fed affirms aggressive policy stance
 

Related Articles

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 (4)
Tom Sc
Tom Sc May 26, 2022 9:03PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
so.....FED "affirms aggressive policy stance"...that's why gold is down/flat but the "aggressive policy stance" has the opposite effect to the Nasdaq?
Mart Bab
Rubberduck1973 May 26, 2022 7:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Again a mistake by investors. Inflation at 8% and climbing, raisin rates 2 x 0,5 basis points is not going to do anything. Stagflation is kicking in. It makes totally no sense at all selling gold. Unless you are buying the 3 rd lie the FED is putting out there about a soft landing. And if you are, consider the FED has to create a recession to bring down inflation and they shorely are going to do everything in their power not to be the trigger of the selloff with wordings. The strain of their actions however will do just that. So it’s just another lie to control the narrative. I am keeping my gold positions because of their actions and not their narrative. Because in the end, only their actions count.
Edward Chong
Edward Chong May 26, 2022 12:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
wat patience??? to take a pause and assess after a rounds of hikes is not patience. its juz a normal thing to do .
Eric Malm
Eric Malm May 25, 2022 11:14PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
As this article is posted Gold is up and still the headline states that gold is down, MSM is strange.
 
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