Latest News

Metals Stocks: Gold prices on track for first weekly loss in 3 weeks as traders eye Fed rate hikes


Gold futures fell Friday and were on track for a weekly decline as a 75 basis point interest rate rise by the Federal Reserve next month looked to be locked in the wake of higher than expected consumer price inflation in September in data published Thursday.

Price action

Gold for December delivery


fell $14.70, or 0.9%, to $1,662.10 an ounce on Comex, on track for a weekly decline of 2.8%.

December silver

was down 19.3 cents, or 1%, at $18.725 an ounce, heading for a 7.6% decline.

December palladium

dropped 1.5% to $2,086 an ounce, while January platinum

rose 2.3% to $901.20 an ounce.

December copper

ticked up 0.2% to $3.448 a pound.

Market drivers

Gold ended lower on Thursday but off session lows in a whipsaw session that saw stocks snap back from sharp losses in volatile activity across financial markets after the September consumer-price index came in hotter than expected, cementing expectations for a 75 basis point rise in the fed-funds rate in early November. Investors also penciled in a higher peak for interest rates as the Fed battles stubborn inflation.

See: Why stocks scored a historic bounce after another hot inflation report

“The inflation data was terrible for the yellow metal as it cemented a 75 basis point hike from the Fed next month. Not just that, with inflation seemingly so stubborn, it may need to go further than markets previously anticipated,” said Craig Erlam, senior market analyst at Oanda, in a note.

“That doesn’t bode well for gold in the near term. Yesterday’s lows around $1,640 could soon be tested once more, with the late-September lows the next test after that,” he said.

Economic Report: Inflation expectations rise in October as consumer mood stays somber

Previous article

: Why Kwasi Kwarteng could not survive the battle with the Bank of England

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News