Gold price crashes as Waller warning sparks Fed hike fears
Precious metals are moving lower as traders bet on hawkish Fed.
Gold prices have rebounded from June's sharp correction, but RBC Capital Markets believes investors should be prepared for further volatility before the precious metal resumes its longer-term advance. Gold (XAU/USD) traded around $4,165 after recovering more than 3% in July, following an almost 12% decline in June that briefly pushed.
At the time of writing, gold was down about 1.5% and was looking quite bleak amid the strength in USD and bond yields. The yellow metal closed in the red last week, unable to build onto the small gains from the week before.
The gold market has found itself to be a little bit negative in early trading on Monday due to a stronger US dollar and the idea that rates are still extraordinarily high.
Gold Price Forecast: XAU/USD drifts below $4,100, but bears start to look exhausted
Gold declines as renewed US-Iran hostilities boost Oil prices, Fed rate hike bets
Gold edged lower after opening with $20 gap lower on Monday, following the latest escalation in the Middle East that fueled inflationary risk and added to expectations that the Fed will keep higher interest rates or possibly opt for rate hikes, providing support to US dollar.
Gold price faces a defining week as CPI, Warsh testimony and Hormuz risks could reshape Fed expectations, Treasury yields and gold's next move.
The DAX, along with its European peers, is opening lower as investors weigh a tech sell-off alongside a fresh escalation in tensions between the U.S. and Iran, which has pushed oil prices higher and revived concerns over inflation and the outlook for interest rates.
Gold slides back closer to $4,050 as Iran risks and Fed hike bets boost USD
Gold falls below $4,100 as fresh US-Iran strikes stoke inflation fears