Gold falls as dollar inches higher; Fed minutes fail to surprise
May 26, 2022 / 10:57 AM
Sharjah24 - Reuters: Gold prices dropped on Thursday as the dollar edged higher, with some investors cashing in after minutes of a U.S. Federal Reserve policy meeting showed that the central bank was likely to stay the course on interest-rate hikes.
Spot gold dipped 0.5% to $1,844.15 per ounce, by 0546 GMT, as a firmer dollar hurt demand for greenback-priced bullion for buyers holding other currencies. U.S. gold futures eased 0.2% to $1,843.30. [USD/]
The Fed's commitment to raising rates has affected gold a little, with some profits being taken as the news sinks in, and prices could drop to $1,820 or so, said Brian Lan, managing director at dealer GoldSilver Central.
Gold cut some dollar strength-driven losses on Wednesday after notes from the Fed's May meeting suggested the central bank would not get more aggressive, and would raise interest rates again by 50 basis points in June and July to combat inflation. [MKTS/GLOB]
In the longer term, however, investors that know a recession is looming are looking at something of high value that can tide them through this period, and gold will shine, Lan said.