Gold Prices Ease as Rate Hike Expectations Increase
Market focuses on St. Louis Fed President Speech
Gold futures extended losses from the earlier session in European trade this Thursday, reaching a four-week low as market participants adapted to the Federal Reserve’s statements about the time the next US rate hike takes place.
St. Louis Fed President James Bullard supported the possibility of an upcoming raise in interest rates in 2016. In addition, in an interview on Wednesday he stated that policymakers should take into consideration raising rates in their April meeting.
Gold for April delivery eased $7.30 to trade at $1,216.70 a troy ounce by 08:20GMT, or 4:20AM ET, after to reaching a session low of $1,211.20, the lowest level it has hit since February 23.
The market will focus on more comments by Bullard later Thursday to determine the balance of opinions between policymakers on the possibility of more interest rate hikes. Bullard’s speech regarding the US economy and monetary policy is scheduled at the Association for Business Economics, in New York at 12:15GMT, or 8:15AM ET.
On Wednesday, gold had moved up $24.60, while hawkish comments by the Federal Reserve pushed the US dollar up.
The US dollar index, which measures the greenback’s strength against a basket of six other major currencies, was up 0.3% reaching a one-week high of 96.35.
Market focuses on St. Louis Fed President Speech
Gold futures extended losses from the earlier session in European trade this Thursday, reaching a four-week low as market participants adapted to the Federal Reserve’s statements about the time the next US rate hike takes place.
St. Louis Fed President James Bullard supported the possibility of an upcoming raise in interest rates in 2016. In addition, in an interview on Wednesday he stated that policymakers should take into consideration raising rates in their April meeting.
Gold for April delivery eased $7.30 to trade at $1,216.70 a troy ounce by 08:20GMT, or 4:20AM ET, after to reaching a session low of $1,211.20, the lowest level it has hit since February 23.
The market will focus on more comments by Bullard later Thursday to determine the balance of opinions between policymakers on the possibility of more interest rate hikes. Bullard’s speech regarding the US economy and monetary policy is scheduled at the Association for Business Economics, in New York at 12:15GMT, or 8:15AM ET.
On Wednesday, gold had moved up $24.60, while hawkish comments by the Federal Reserve pushed the US dollar up.
The US dollar index, which measures the greenback’s strength against a basket of six other major currencies, was up 0.3% reaching a one-week high of 96.35.
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