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Gold inches downward
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Gold inches downward

Gold prices experienced a slight decline as numerous Federal Reserve officials cautioned about the possibility of further interest rate increases due to relatively high inflation and a strong labour market. The prior session saw limited gains for gold as traders awaited upcoming U.S. economic data, starting with retail sales and industrial production later in the day. Safe haven demand for gold remained supported by concerns of a U.S. economic slowdown, helping to maintain its support level of $2,000. Spot gold dropped 0.1% to $2,014.82 per ounce, while gold futures declined 0.2% to $2,019.35 per ounce. Several regional Fed presidents emphasized the need for additional efforts to meet the bank's 2% annual inflation target, indicating uncertainty over whether the bank would pause in June. Market expectations currently indicate a 79.9% probability of the Fed halting its rate hikes in June. The potential for higher U.S. interest rates negatively affects non-yielding assets like gold, yet safe haven demand for gold persists due to concerns about a U.S. recession and potential banking issues. Other precious metals, such as platinum futures, remained relatively unchanged, while silver fell 0.2%.

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15:47:48/2023-05-16

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