081324165241

tradesupport@royalrafflescapital.com

Gold languishes as strong US data stokes Fed rate hike woes

August 16, 2023

Gold prices were flat on Wednesday, a day after breaching the key $1,900 support level on strong U.S. consumer spending data fuelling speculation that the Federal Reserve was not done with its interest rate hiking cycle.

FUNDAMENTALS

 

* Spot gold was flat at $1,900.90 per ounce by 0123 GMT, while U.S. gold futures eased 0.1% to $1,933.

* Gold on Tuesday dropped to as low as $1,895.50 an ounce, its weakest level since end-June, as benchmark 10-year U.S. Treasury yields hit an almost 10-month high, making them more attractive than non-interest bearing bullion.


* U.S. retail sales increased more than expected in July, suggesting the economy continued to expand early in the third quarter while keeping a recession at bay.

* Later in the day, investors will scan minutes from the Fed's July policy meeting to gauge its upcoming rate strategy.

* Minneapolis Fed President Neel Kashkari on Tuesday said that while the U.S. central bank has made some progress in its inflation fight, interest rates may still need to go higher to finish the job.

 


* Basic wages in Britain hit a record growth rate, adding to worries for the Bank of England about long-term inflation pressures even after 14 back-to-back rate hikes.


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081324165241

tradesupport@royalrafflescapital.com

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|--------------------------------------------------------------------------
| Run The Application
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