Gold extends slide as dollar firms on hawkish Fedspeak
Gold prices fell further to hit a near one-week low on Wednesday as the U.S. dollar strengthened after a Federal Reserve official's hawkish comments dampened bets for a March rate cut, while traders awaited comments from more Fed speakers this week.
Spot gold was down 0.5% at $2,018.29 per ounce, as of 0647 GMT. It stooped 1.3% in the previous session, which was its biggest single-day decline since Dec. 4, 2023.
U.S. gold futures fell 0.4% to $2,021.30.
The flow of funds to the U.S. dollar has been a key driver impacting the gold prices, which could drop to around $2,000/Oz in the near term, said Michael Langford, chief investment officer at Scorpion Minerals Ltd.
The dollar index (.DXY), opens new tab rose 0.2%, making bullion more expensive for other currency holders. It shot up to a more-than-one-month high on Tuesday after Fed Governor Christopher Waller said the U.S. central bank should not rush to cut rates until lower inflation can clearly be sustained.
The odds of a Fed rate cut in March have dropped to about 65% currently, from about 75% on Tuesday morning, per the CME FedWatch tool, opens new tab.
Waller's comments triggered a broad sell-off, pulling all three major U.S. stock indexes lower, while Treasury yields logged their biggest one-day jump in more than three months.
While escalating geopolitical tensions could boost gold's appeal as a safe haven, 'the short-term fate of the gold price is likely in the hands of the bond market,' Tim Waterer, chief market analyst at KCM Trade, wrote in a note.
Spot silver fell by 1% to $22.69 per ounce.
Platinum declined 0.5% to $890.10 and palladium slipped 0.2% to $934.07.
As these sister metals approach price parity, the rate at which platinum is displacing palladium in the manufacture of autocatalysts is slowing, a trend likely to persist this year.
Reuters
Gold prices fell further to hit a near one-week low on Wednesday as the U.S. dollar strengthened after a Federal Reserve official's hawkish comments dampened bets for a March rate cut, while traders awaited comments from more Fed speakers this week.
Spot gold was down 0.5% at $2,018.29 per ounce, as of 0647 GMT. It stooped 1.3% in the previous session, which was its biggest single-day decline since Dec. 4, 2023.
U.S. gold futures fell 0.4% to $2,021.30.
The flow of funds to the U.S. dollar has been a key driver impacting the gold prices, which could drop to around $2,000/Oz in the near term, said Michael Langford, chief investment officer at Scorpion Minerals Ltd.
The dollar index (.DXY), opens new tab rose 0.2%, making bullion more expensive for other currency holders. It shot up to a more-than-one-month high on Tuesday after Fed Governor Christopher Waller said the U.S. central bank should not rush to cut rates until lower inflation can clearly be sustained.
The odds of a Fed rate cut in March have dropped to about 65% currently, from about 75% on Tuesday morning, per the CME FedWatch tool, opens new tab.
Waller's comments triggered a broad sell-off, pulling all three major U.S. stock indexes lower, while Treasury yields logged their biggest one-day jump in more than three months.
While escalating geopolitical tensions could boost gold's appeal as a safe haven, 'the short-term fate of the gold price is likely in the hands of the bond market,' Tim Waterer, chief market analyst at KCM Trade, wrote in a note.
Spot silver fell by 1% to $22.69 per ounce.
Platinum declined 0.5% to $890.10 and palladium slipped 0.2% to $934.07.
As these sister metals approach price parity, the rate at which platinum is displacing palladium in the manufacture of autocatalysts is slowing, a trend likely to persist this year.
Reuters
Gold prices fell further to hit a near one-week low on Wednesday as the U.S. dollar strengthened after a Federal Reserve official's hawkish comments dampened bets for a March rate cut, while traders awaited comments from more Fed speakers this week.
Spot gold was down 0.5% at $2,018.29 per ounce, as of 0647 GMT. It stooped 1.3% in the previous session, which was its biggest single-day decline since Dec. 4, 2023.
U.S. gold futures fell 0.4% to $2,021.30.
The flow of funds to the U.S. dollar has been a key driver impacting the gold prices, which could drop to around $2,000/Oz in the near term, said Michael Langford, chief investment officer at Scorpion Minerals Ltd.
The dollar index (.DXY), opens new tab rose 0.2%, making bullion more expensive for other currency holders. It shot up to a more-than-one-month high on Tuesday after Fed Governor Christopher Waller said the U.S. central bank should not rush to cut rates until lower inflation can clearly be sustained.
The odds of a Fed rate cut in March have dropped to about 65% currently, from about 75% on Tuesday morning, per the CME FedWatch tool, opens new tab.
Waller's comments triggered a broad sell-off, pulling all three major U.S. stock indexes lower, while Treasury yields logged their biggest one-day jump in more than three months.
While escalating geopolitical tensions could boost gold's appeal as a safe haven, 'the short-term fate of the gold price is likely in the hands of the bond market,' Tim Waterer, chief market analyst at KCM Trade, wrote in a note.
Spot silver fell by 1% to $22.69 per ounce.
Platinum declined 0.5% to $890.10 and palladium slipped 0.2% to $934.07.
As these sister metals approach price parity, the rate at which platinum is displacing palladium in the manufacture of autocatalysts is slowing, a trend likely to persist this year.
Reuters
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Gold extends slide as dollar firms on hawkish Fedspeak
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