PT Solid Gold Berjangka | Gold Slips as Markets Digest Fed’s Higher for Longer Messaging

05:05 21 September in Commodity, Gold, SOLID GOLD BERJANGKA | SOLID GROUP

Gold slipped as markets considered hawkish commentary from the Federal Reserve, after US policymakers signaled interest rates will remain higher for longer.

The Federal Open Market Committee on Wednesday held its target range at 5.25% to 5.5%, while updated quarterly projections showed 12 of 19 officials favored another rate hike in 2023. Policymakers also see less easing next year, according to the new forecasts.

Bullion climbed before the decision and then reversed in its wake, though the metal has largely remained range bound since mid-May as traders keep pushing out the timing of when the Fed is expected to start monetary easing. Higher rates are typically negative for non-interest bearing bullion.

Treasury yields surged to multi-year highs following the September meeting and bond traders are bracing for levels to keep pushing higher, according to a Bloomberg survey.

Spot gold was 0.2% lower at $1,927.13 an ounce at 10:04 a.m. in Singapore. The Bloomberg Dollar Spot Index gained 0.2%. Silver, platinum and palladium all declined.

Source : Bloomberg


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