iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

As a result of the Fed's aggressive stance, gold prices are expected to suffer

23 Jun 2023 , 10:47 AM

As the likelihood of further interest rate increases by the U.S. Federal Reserve this year impacted on the attraction of metal, gold prices on Friday were on course for their worst weekly decline since February.

Spot gold was up 0.1% at $1,915.39 per ounce, but it was still trading near a three-month low. American gold futures were stable at $1,925.10.

Bullion, meanwhile, experienced a 2.2% weekly decline.

The dollar index remained stable and is expected to increase weekly, which makes gold less appealing to foreign investors.

On the second day of his testimony, Fed Chair Jerome Powell stated that the U.S. central bank would raise interest rates going forward at a ‘careful pace’ as decision-makers approach the end of their historic cycle of tightening monetary policy.

In a separate statement, Fed Governor Michelle Bowman stated that ‘additional policy rate increases’ will be required to keep inflation under control.

After the U.S. central bank kept interest rates unchanged at its June meeting, investors now anticipate that rate increases will resume in July.

In the meantime, U.S. unemployment claims remained stable at a 20-month high last week, possibly indicating a deteriorating labour market in response to the Fed’s brisk rate hikes.

Furthermore, according to data released on Friday, Japan’s core consumer prices increased 3.2% in May from a year earlier, while service sector growth slowed for the first time in seven months and manufacturing activity resumed contracting in June.

Spot silver decreased by 0.1% and platinum decreased by 0.1% to each be at $22.2223 and $921.88, respectively. Palladium held steady at $1,284.36 after falling as low as it has in a session since May 2019.

For feedback and suggestions, write to us at editorial@iifl.com

Related Tags

  • FED
  • gold
  • inflation
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.