Gold Steady After 3% Rout On Fed Chair Warsh's Hawkish Remarks
· Business · Economic Times, Investing.com, Times of India
Gold prices held flat on Monday at $4,455.29 per ounce after falling more than 3% in the previous session, the sharpest drop triggered by Federal Reserve Chair Kevin Warsh's hawkish signals. Warsh said the U.S. central bank would have work to do if policymakers don't gain confidence that inflation is heading to 2%, the closest he has come to acknowledging interest rate hikes may be needed. Markets now price in a 57% chance of a rate hike at the Fed's September meeting, up from 36% before his comments, according to the CME FedWatch tool. U.S. gold futures for December delivery fell 0.6% to $4,504.90. A series of U.S. labour market reports due this week, including nonfarm payrolls, will shape the rate outlook further.
Why it matters
A hawkish Fed and a stronger dollar put pressure on gold prices, which directly affects Indian households who buy gold for weddings and savings, as well as Indian jewellers and bullion ETFs tracking the global price.
Read the original report — Economic Times
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