The post Gold slips as strong USD follows Fed hawkish remarks appeared on BitcoinEthereumNews.com.

Gold falls 0.59%, pressured by a recovering US Dollar and rising Treasury yields. Golden metal was pressured by Fed Governor Michelle Bowman’s hawkish remarks. Fed’s Lisa Cook is neutral, forecasting a sharp inflation decline next year. US Conference Board indicates declining consumer optimism, with diminished expectations for future income and business conditions. Gold price tumbled after reaching a weekly high of $2,334 and fell as the Greenback staged a recovery underpinned by a minimal rise in US Treasury bond yields, spurred by Federal Reserve (Fed) Governor Michelle Bowman’s hawkish comments. The XAU/USD trades at $2,319, down 0.59%. Bowman emphasized that monetary policy should remain steady for “some time” and would probably be enough to bring inflation down. She disregarded rate cuts this year and stated she’s willing to raise rates “should progress on inflation stall or even reverse.” Recently, her colleague Lisa Cook adopted a more neutral stance, saying that inflation was most likely to fall “sharply” next year, adding that it would be necessary to ease policy to keep the Fed’s dual mandate more balanced. Regarding economic data, the US Conference Board revealed that consumers are becoming less optimistic. According to the survey, consumers’ views of the current situation improved; nevertheless, “their expectations for both future income and business conditions weakened, weighing down the overall Expectations Index.” In the meantime, traders are awaiting the release of the Fed’s preferred gauge for inflation, the Personal Consumption Expenditures (PCE) Price Index. If the data edges below the previous reading and estimates, it will reignite rate cut hopes for the year ahead. Daily digest market movers: Gold price extends its losses on strong US Dollar US Dollar Index (DXY), which tracks the value of American currency against a basket of six other currencies, gained 0.13% to 105.61. In the meantime, US 10-year…

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Filed under: News - @ June 26, 2024 1:24 am