|
Gold trades near three-week trough on US rate hike forecasts
Gold prices were little changed in Asian trade today after plumbing three-week lows earlier amid expectations of four Fed rate hikes this year.
Fed Chair Jerome Powell indicated in his Congress testimony that the Fed will carry on its policy tightening path and gradual rate hikes, as labor conditions and wages improve and underpin inflation.
His testimony raised expectations of four Fed rate hikes this year, in turn hurting the yellow metal for its inverse relation with rate hikes.
10-year US bond yields rebounded from week lows on rate hike forecasts, heaving additional pressure on gold as investments move to the bonds market.
Gold traded near the opening price at $1,317.64, with a session-low at $1,315.62, and a low at $1,318.99.
Thanks for your feedback.
Aussie hovers near two-week low
Australian dollar fell against the US counterpart to near a two-week low, as the US dollar rallied following Jerome Powell's Congress testimony, and after disappointing manufacturing and services data from China.
MoreWall Street ends over 1% in the red after Powell's testimony
US stock indices closed the second session of the week lower in a break with recent sessions, as 10-year US bond yields returned higher after Federal Reserve Chair Jerome Powell's testimony on the Semiannual Monetary Policy Report before the House Financial Services Committee, in Washington DC, earlier today.
MoreWheat climbs to seven-month high even as dollar rebounds
Wheat futures rose nearly one percent in American trade to late July highs, as the dollar index rebounded from December 17, 2014 lows for the seventh session out of eight, following earlier data from the US, the world's second largest wheat exporter, while Federal Reserve Chair Jerome Powell testified on the Semiannual Monetary Policy Report before the House Financial Services Committee, in Washington DC, today.
More