🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

Gold retraces from 6-year peak after comments from U.S. Fed officials

Published 2019-06-25, 02:58 p/m
© Reuters.  Gold retraces from 6-year peak after comments from U.S. Fed officials
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PA
-
PL
-
GLD
-

* Gold set to gain for sixth straight session

* Dollar gains after dipping to 3-month low

* Fed "insulated from short-term political pressures"- Powell

* Fed's Bullard does not see need for half-point rate cut

By Karthika Suresh Namboothiri and Diptendu Lahiri

June 25 (Reuters) - Gold prices retreated from a six-year high on Tuesday after comments from U.S. Federal Reserve officials trimmed expectations that the central bank will lower interest rates by half a percentage point next month.

Federal Reserve Chairman Jerome Powell said the U.S. central bank is "insulated from short-term political pressures," as policymakers wrestle with whether to cut rates. comments came after St. Louis Federal Reserve Bank President James Bullard said he does not think the U.S. central bank needs to cut interest rates by a half-percentage point at its next meeting in July. gold XAU= was up 0.3% at $1,423.26 per ounce as of 2:36 p.m. EDT (1836 GMT). Prices had touched a high of $1,438.63 in the session, a level last seen in May 2013, and were set for a sixth straight sessions of gains.

U.S. gold futures GCcv1 were little changed on settlement at $1,418.7.

"The whole gold move (higher) was on the back of the Fed's signal to cut rates by 50 basis points in the last FOMC (Federal Open Market Committee) meeting," said Bob Haberkorn, senior market strategist at RJO Futures.

"Now, Bullard and Powell's comments are going against that and Trump's wishes. It is probable that gold might continue paring gains to until the G20 meeting."

The comments lifted the dollar and pressured gold, prompting bullion to turn negative briefly, after it had rallied more than 1% earlier in the session on the back of expectations of monetary easing by the Fed and a subdued dollar. interest rates reduce the opportunity cost of holding non-yielding bullion, and gold had gained nearly $100 in value since the Fed's statement last week that hinted at monetary easing.

Meanwhile, tensions between Iran and the United States lifted demand for safe-haven gold. Investors also watched for further cues on trade negotiations between Washington and China at the G20 summit. have been buying what they feel could be an additional haven on more upcoming volatility caused by global economic pullback, the tinder box of the Middle East with Iran, and the G20, which may not bring the (trade) deal with China that everybody is expecting," said George Gero, managing director at RBC Wealth Management.

Indicating investor interest in gold, holdings of SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, rose 0.37% on Monday, after posting their biggest percentage gain in nearly 11 years on Friday. GOL/ETF

Among other precious metals, platinum XPT= declined 0.71% to $804.25 per ounce, while silver XAG= dipped 0.5% to $15.36. Palladium XPD= slipped 0.5% to $1,527.01 after hitting its highest level since March 26 at $1,551, earlier in the session.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Gold price in multiple currencies

https://tmsnrt.rs/2FIFb8b

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.