Gold prices decline in early trade

18 May 2023 , 08:28 AM

Following remarks by U.S. Federal Reserve officials that raised doubts about interest rate reductions this year, gold prices fell on Wednesday while the dollar strengthened.

Spot gold had down 0.7% to $1,975.70 per ounce, its lowest level since April 27. Futures for U.S. gold decreased 0.5% to $1,983.90.

Bullion, which also competes with the currency as a safe-haven, is losing appeal as a result of the dollar index reaching a six-week high, especially among foreign buyers. 

While Cleveland Fed President Loretta Mester stated that rates were not yet at a stage where the bank could keep steady, Chicago Fed President Austan Goolsbee reiterated the central bank’s commitment to containing inflation.

According to Fed Fund Futures, traders are pricing in a roughly 75% chance that the Fed would hold the line on interest rates in June, with reductions still anticipated late in the year’s second half.

Palladium decreased by 1.3% to $1,481.85, platinum increased by 0.8% to $1,065.30, and silver decreased by 0.6% to $23.60 per ounce.

For feedback and suggestions, write to us at [e-mail]