Fed Melts Gold Investors' Hopes!

thecekodok

 Gold traded around Thursday's lows following minutes of the Federal Reserve (Fed) meeting that indicated the central bank would continue to raise interest rates.


At a meeting earlier this month, the central bank decided to raise interest rates by 25 basis points and said more rate hikes would be needed to return inflation to the 2% target.


Not only that, but there are some policymakers who favor a 50 basis point hike, saying a bigger increase would bring the central bank faster to a target range believed to be tight enough to lower inflation.



This fell short of market expectations that the central bank would stop raising rates in the middle of the year when the results of the meeting were released recently.


Following that, the yellow metal slipped back to around 6-week lows below $1,830 an ounce.


The Asian session saw gold trading at $1,828 per ounce, while gold futures were down at $1,836 per ounce.