scorecardresearchGold holds steady near three-month lows, markets assess Powell's remarks

Gold holds steady near three-month lows, markets assess Powell's remarks

Updated: 22 Jun 2023, 08:57 AM IST
TL;DR.

Spot gold was flat at $1,932.35 per ounce by 0242 GMT. U.S. gold futures ticked down 0.1% to $1,942.70.

Gold could trade between $1,900 to $1,980 until the next Fed decision, Meir added.

Gold could trade between $1,900 to $1,980 until the next Fed decision, Meir added.

(Reuters) Gold prices were little-changed on Thursday on renewed talks of interest rate hikes this year by the U.S. Federal Reserve, keeping the bullion pinned near a three-month low hit in the previous session.

Spot gold was flat at $1,932.35 per ounce by 0242 GMT. U.S. gold futures ticked down 0.1% to $1,942.70.

Fed's Powell in his remarks to lawmakers on Capitol Hill said further rate increases are "a pretty good guess" of where the U.S. central bank is heading if the economy continues in its current direction.

While higher interest rates dull the appeal for zero-yield bullion, Edward Meir, a metals analyst at Marex said "the market still believes the central bank is "very close to finishing their rate hikes," and that's why gold hasn't really done all that much. It's a little bit on the defensive, but hasn't collapsed," said .

Gold could trade between $1,900 to $1,980 until the next Fed decision, Meir added.

Markets are pricing in a 72% chance of a 25 basis point hike next month, according to CME FedWatch tool.

Atlanta Fed President Raphael Bostic, meanwhile, became the first policymaker to suggest the Fed would need to wait at least past its July meeting to decide on further rate increases.

The dollar index held close to Wednesday's lows. A weaker dollar usually makes bullion more appealing for overseas investors.

Traders now await weekly U.S. initial jobless claims data at 1230 GMT, an important indicator of the U.S. economy, and the Bank of England's rate decision after inflation data came in higher than expected again, with investors split on just how big the new hike will be.

Spot silver was little changed at $22.6293 per ounce, after hitting its lowest since March 22 in the previous session.

Platinum added 0.4% to $944.96, and palladium inched up 0.1% to $1,348.81.

 

 

First Published: 22 Jun 2023, 08:56 AM IST