Gold: Fed hawkishness and Dollar strength weigh on prices – UOB

UOB Global Economics & Markets Research highlights that Gold eased as hawkish Fed signals and a stronger US Dollar pressured the metal. An interim US–Iran ceasefire reduced inflation fears and contributed to softer Oil, further dampening Gold’s appeal as an inflation hedge.

UOB Global Economics & Markets Research highlights that Gold eased as hawkish Fed signals and a stronger US Dollar pressured the metal. An interim US–Iran ceasefire reduced inflation fears and contributed to softer Oil, further dampening Gold’s appeal as an inflation hedge. Spot Gold slipped 0.6% to $4,232.01, while US futures fell 3.1% to $4,245.90 per ounce.

Safe haven loses ground after Fed pause

“Gold prices edged lower on Thu, pressured by hawkish policy signals from the Fed and a stronger US dollar, while the US-Iran ceasefire deal that dialed back inflation concerns and sent oil markets lower.”

“Spot gold was down 0.6% at $4,232.01/oz. US gold futures fell 3.1% to settle at $4,245.90/oz.”

“US Treasuries advanced on Thu, led by the longer-end of the curve in a bull flattening move which unwound a small portion of Wed’s post-Fed slide. Advance came as stocks also pushed higher following an interim peace deal between the US and Iran eased some inflationary fears.”