Gold took a hit after the Federal Reserve signaled monetary-policy tightening could start sooner than previously thought, with prices heading for the biggest weekly decline in 15 months amid a resurgent dollar. The metal has tumbled through key technical support levels, including falling below its 100-day moving average.
Gold fell to a four-week low after the Federal Reserve pulled forward the projected date of interest- rate increases, confirming worries the central bank would soon pare stimulus that’s spurred gains in the metal. They also released forecasts that show they anticipate two interest-rate increases by the end of 2023 – sooner than many thought — and they upgraded estimates for inflation for the next three years.
Gold declined to near the lowest level in four weeks as the U.S. dollar and bond yields rebounded ahead of a key Federal Reserve meeting. Gold steadied near the lowest level in four weeks as investors awaited the conclusion of the Federal Reserve’s two-day meeting for clues on monetary policy.
The country’s gold imports surged to hit 111 tonnes during the month. This is the highest level of import since January 2020. The imports during the month were up by 73 tonnes from the prior month and by 106 tonnes from the same month a year before. The higher imports by the country were mainly on account of escalated gold demand and lower local gold supply.
Gold declined to near the lowest level in four weeks as the U.S. dollar and bond yields rebounded ahead of a key Federal Reserve meeting. Bullion’s retreat from the highest level since January earlier this month came as investors weigh inflation pressures and the Fed’s monetary policy path. Expectations are that the central bank won’t signal scaling back bond purchases until August or September, even if it delivers projections for interest-rate liftoff in 2023.
Gold extended a decline as investors await this week’s Federal Reserve meeting for clues on the future path of monetary policy. Fed officials could project interest-rate liftoff in 2023 amid faster economic growth and inflation, but they won’t signal scaling back bond purchases until August or September
The Federal Reserve is likely to announce in August or September a strategy for reducing its massive bond-buying program, but won’t start cutting monthly purchases until early next year. This means FED will start Tapering the QE of $120 Billion gradually and reduce to $110 billion, then $100 billion, then $90 billion and so on
Gold prices nudged up on Friday after data showed U.S. consumer prices increased more than expected last month but eased fears over the Federal Reserve tapering its monetary support. Data showed U.S. consumer prices increased further in May as continued economic recovery from the pandemic boosted domestic demand. Weekly jobless claims also dropped to their lowest level in nearly 15 months
Central banks have been buying gold during the first four months of 2021. Over that period, we estimate that the official sector has added 150-200 tonnes of gold. A significant portion of this buying has come from the central banks of Hungary and Thailand, who added 63 tonnes in March and 43.5 tonnes in April, respectively.