Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Gold Heads for Its Biggest Weekly Loss in More Than a Year

Published 18/06/2021, 05:26
Updated 18/06/2021, 05:26
© Reuters.

© Reuters.

(Bloomberg) -- Gold headed for the biggest weekly loss in 15 months as the Federal Reserve’s hawkish tilt sent the dollar surging.

Officials signaled monetary policy tightening could start earlier than expected, with Chair Jerome Powell saying that the central bank would begin a discussion about scaling back bond purchases used to support financial markets and the economy during the pandemic.

The surprisingly hawkish Fed shift of bringing forward the start of rate hikes puts it on course to formally announce tapering at their September gathering and begin to slow its $120 billion in monthly bond buying in November, according to economists at Barclays (LON:BARC) Plc.

“The taper tantrum trade is hitting gold the hardest right now and could last a couple more sessions,” said Edward Moya, a senior market analyst at Oanda Corp. “Gold looks like a falling knife but eventually the longer-term prospects will attract buyers. Long-term bets on gold could start to emerge closer to the $1,750 level, but some might wait and see if one last thrust lower eyes the $1,675 level. ”

While the Fed sped up their expected pace of policy tightening, Powell cautioned that discussions about raising interest rates would be “highly premature.”

Spot gold rose 0.3% to $1,778.09 an ounce at 8:52 a.m. in Singapore, after tumbling to $1,767.34 on Thursday, the lowest since May 3. Prices are down 5.3% this week, the most since March 2020. Silver, palladium and platinum all advanced. The Bloomberg Dollar Spot Index slipped 0.1% to pare this week’s gain to 1.5%.

©2021 Bloomberg L.P.

Latest comments

its jp morgan and oals covering their shorts !!!! there was no news to devastate gold price !!!!!!!!!!
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.