Gold: Fed hawkishness and Dollar strength weigh on prices – UOB

UOB Global Economics & Markets Research highlights that Gold eased as hawkish Fed signals and a stronger US Dollar pressured the metal. An interim US–Iran ceasefire reduced inflation fears and contributed to softer Oil, further dampening Gold’s appeal as an inflation hedge. Spot Gold slipped 0.6% to $4,232.01, while US futures fell 3.1% to $4,245.90 per ounce.

Safe haven loses ground after Fed pause

"Gold prices edged lower on Thu, pressured by hawkish policy signals from the Fed and a stronger US dollar, while the US-Iran ceasefire deal that dialed back inflation concerns and sent oil markets lower."

"Spot gold was down 0.6% at $4,232.01/oz. US gold futures fell 3.1% to settle at $4,245.90/oz."

"US Treasuries advanced on Thu, led by the longer-end of the curve in a bull flattening move which unwound a small portion of Wed’s post-Fed slide. Advance came as stocks also pushed higher following an interim peace deal between the US and Iran eased some inflationary fears."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)