Precious Metals Preview: Rate Hike Scenario To Keep Gold Under Pressure

15 Jul 2022 , 09:13 AM

Gold is extending downward momentum amid broad strength in the US dollar and recovery in US benchmark yields expecting a rather oversized interest rate hike by the Federal Reserve. The dollar index rose to a fresh 20-year high of 109.29 before paring some gains and is currently quoting at 108.43. The Fed is expected to continue its already aggressive stance after reports revealed that US inflation is running at a scorching level of 9.1% on year, its highest level of inflation since November 1981. Higher interest rate scenario is likely to keep the precious metal under pressure. Gold futures for August stay range bound at $1,706.80 an ounce, after dropping to a low of $1,695.00 an ounce yesterday. Powered by Commodity Insights