Precious Metals Preview: Gold Loses Sheen As Fed Stays Hawkish On Rates

3 Nov 2022 , 08:40 AM

Gold lost sheen in early Asia on Thursday, tracking strength in treasury yields and dollar following a large interest rate hike by the Federal Reserve in its latest policy meeting. The Federal Reserve on Wednesday announced its widely expected decision to raise interest rates by another 75 basis points. Citing efforts to achieve maximum employment and inflation at the rate of 2 percent over the longer run, the Fed announced its decision to raise the target range for the federal funds rate to 3.75 to 4 percent. The Fed also said that ongoing increases in rates will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time. US 10-year benchmark yields were soaring more than 1% while the greenback was quoting higher by nearly half a percent at 111.79. COMEX gold was currently quoting up 0.70% at 1638.50 an ounce. Powered by Commodity Insights