Aggressive Fed rate lift outlook suppresses gold

Aggressive Fed rate lift outlook suppresses gold

On Thursday, gold headed south right after the key US bank decided not to change its interest rates, although the key bank hinted that further rate lifts might take place a bit later in 2018.

Gold futures went down in New York demonstrating an outcome of $1,343.10 per troy ounce.

During the last policy gathering with Janet Yellen as Fed Chair, the major US financial institution revealed that it would leave interest rates on hold – a widely anticipated move. The key bank added that inflation would most likely ascend in 2018.

Those remarks indicated that borrowing costs are going to keep soaring under new Fed Chair Jerome Powell.

The vast majority of market experts are absolutely assured that the key American financial institution will have interest rates lifted already in March. Another rise is anticipated to take place in June, while a third one is believed to emerge in December.

As a matter of fact, gold turns to be very sensitive to lifting rates because it raises the opportunity cost for holders of nonyielding bullion.    

Treasury yields headed north, with the benchmark 10-year note moving to 2.75%, which is the highest value for nearly four years.

Apart from the Federal Reserve, there’s a flock of reports on today's economic calendar, with weekly jobless claims, fourth-quarter productivity to say nothing of labor costs. Other crucial economic reports include manufacturing and construction.

Market participants are looking ahead to US nonfarm payrolls report to be unveiled on Friday.

As for other metals, silver futures were intact, still demonstrating an outcome of $17.24 per troy ounce. Besides this, palladium headed south, losing approximately 0.3% being worth $1,020.80 an ounce. Platinum went down 0.6% trading at $997.90. March delivery copper futures were nearly intact demonstrating a reading of $3.195 per pound.



The US Payrolls Bring New Hope for Gold
The US Payrolls Bring New Hope for Gold

The Us Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on June 3, 15:30 MT time (GMT+3).

Russian Oil Got Banned from Market
Russian Oil Got Banned from Market

This week started with the talk of the United States banning Russian oil exports, so XBR/USD saw $130 a barrel. Then the ban became reality. What does it really mean for the market?

Latest news

China Stocks are About to Jump
China Stocks are About to Jump

It’s Wednesday, my fellow traders! The day is filled with news and events you need to know, and here’re some of them.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera