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Monday, August 15, 2022

Gold Prices Edge Higher as FOMC Meeting Takes Center Stage

Gold Prices Edge Higher as FOMC Meeting Takes Center StageGold edged forward on Monday.

Investing.com – pushed forward on Monday as traders look ahead to the Federal Open Market Committee meeting later this week.

Gold futures for February delivery rose 0.30% to $1,252.20 a troy ounce on the Comex division of the New York Mercantile Exchange as of 5:23 AM ET (10:23 GMT).

Stagnant wage growth and inflation have increased concern over rate rises. Data on Friday showed that were lower than expected, while the U.S. economy added jobs in November. The unemployment rate held steady at for a second consecutive month.

Gold fell to a four-month low on Friday after the release of the data. A stronger dollar also weighed on the commodity. Gold is sensitive to rising rates, which increase the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.

Gold prices have been falling since September amid expectations the Federal Reserve will continue on its gradual path of monetary policy tightening. The central bank is widely expected to hike rates at its upcoming meeting on Dec. 12-13.

While an interest rate hike has been priced in, hawkish signals from Fed policymakers could cause the precious metal to sink lower.

Meanwhile investors are also looking to news of the tax reform bill, which Republican leaders are rushing to pass before Christmas. The increasing likelihood of it passing has driven the U.S. dollar up slightly, which in turn drags down on gold.

Elsewhere on the Comex, were up 0.42% to $15.89 a troy ounce. Among other precious metals, surged 0.80% to $890.90, while gained 0.68% to $1,003.20 an ounce.

Meanwhile, inched forward 0.22% to $2.985 a pound.

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Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

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