Gold Steadies Despite Rate Hike Headwinds, set for Flat Week

Gold Steadies Despite Rate Hike Headwinds, set for Flat Week By

Breaking News


Commodities 1 hour ago (Sep 22, 2022 08:12PM ET)

(C) Reuters.

By Ambar Warrick– Gold prices steadied on Friday, and were set to end the week largely unchanged as selling pressure from a hawkish Federal Reserve appeared to have eased.

Bullion prices showed surprising resilience this week after the Fed hiked rates and struck a more hawkish tone than many were expecting, with U.S. interest rates now set to end the year well above 4%,

But prices of the yellow metal were still trading well below $1,700- a key support level they lost this week. This also spurred some bargain hunting for gold.

Spot gold was largely unchanged around $1,672.37 an ounce, while gold futures held around $1,680 an ounce at 19:40 ET (23:40 GMT). Resilience in prices also came as the dollar retreated slightly from a fresh 20-year peak hit on Thursday.

The near-term outlook for gold is still constrained by the prospect of rising U.S. interest rates, which boosted the dollar and dragged bullion prices off record highs this year.

But expectations of more economic ructions from the Fed’s hawkish moves have raised expectations that the yellow metal may eventually regain its safe haven status. Traders are also pricing in the possibility that the Fed will begin cutting rates in late-2023 to prevent broader economic shocks from high rates.

“The hawkish Fed projections are a rather grim outlook for the economy and that could eventually trigger a resumption of a safe-haven role for gold. This inflation fight is going to get ugly for the economy, but right now it seems the Fed will be done hiking in February,” analysts at Oanda wrote in a note this week. They also indicated that gold may have found a bottom.

Among industrial metals, copper futures rose 0.2% to $3.4690 a pound on Friday.

Prices of the red metal were set to end the week 1.4% lower, down for a second consecutive week as traders feared that rising interest rates across the globe would weigh on industrial activity.

Apart from the Fed, the Bank of England also hiked rates this week to combat rising inflation, as did central banks in Europe and Asia.

Gold Steadies Despite Rate Hike Headwinds, set for Flat Week

Oil Heads for 4th Week of Losses as Fed Jitters Offset Tightening SupplyBy – Sep 22, 2022

By Ambar Warrick– Oil prices rose slightly on Friday, but were set to lose for a fourth straight week as concerns over headwinds from rising interest rates…

Oil prices rise as Iran deal stalls, Russian supply amid conflictBy Reuters – Sep 22, 2022

By Laila Kearney (Reuters) – Oil prices rose in early Asian trade on Friday on the prospect that a stalled Iran nuclear agreement and Moscow’s new mobilization campaign in its…

Bermuda hunkers down as Hurricane Fiona looms, powerless Puerto Rico sweltersBy Reuters – Sep 22, 2022

By Don Burgess and Ivelisse Rivera HAMILTON, Bermuda (Reuters) -Bermudians boarded up windows and stocked up on groceries and flashlight batteries as Hurricane Fiona drew nearer…

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning

(C) 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

About the author