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.

 

Similar

Popular

Japan real wages surge is slowest in almost two years

Japan's March real wages went down at the fastest pace in nearly two years, weighed by minor nominal pay lifts as well as a moderate ascend in consumer prices, thus posing a setback for Prime Minister Shinzo Abe's tries to revitalize the Japanese…

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

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