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Tuesday, March 21, 2023

Gold Inches Down After Trump Comments

Gold Inches Down After Trump Comments© Reuters. Gold was slightly lower on Friday.

Investing.com – Metal prices were higher but gold inched down amid comments from U.S. President Donald Trump, who criticized the Federal Reserve for increasing interest rates.

Comex for August delivery inched down 0.04% to $1,223.50 a troy ounce as of 4:32 AM ET (8:32 GMT).

Trump said in an interview on CNBC that he does not approve of how the Fed is approaching monetary policy. The Fed raised rates twice this year and is expected to raise rates at least once more before the end of the year.

“I’m not thrilled,” Trump said. “Because we go up and every time you go up they want to raise rates again. I don’t really — I am not happy about it. But at the same time I’m letting them do what they feel is best.”

Higher rates are a negative for gold as the precious metal, which does not pay interest, struggles to compete with yield-bearing assets when rates rise.

The dollar and stock market fell after Trump’s comments, with Treasury yields also declining.

The lower dollar weighed on the precious metal. Gold normally falls as the dollar rises, as it is denominated in the U.S. currency and is sensitive to moves in the dollar.

The , which measures the greenback’s strength against a basket of six major currencies, fell 0.08% to 94.90.

Bullion becomes more expensive for holders of other currencies when the dollar rises and cheaper when it falls.

Meanwhile trade tensions continue, with the European Union expected to retaliate against the U.S. with more tariffs after America imposed tariffs on steel and aluminum in June. Tariffs on around $3.8 billion of U.S. goods have already been imposed by Europe.

Other metals were higher on the Comex, with rising 0.15% to $15.425 a troy ounce. Among other precious metals, increased 1.33% to $817.00 while jumped 2.26% to $885.80 an ounce. futures gained 1.54% to $2.737 a pound.

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Source: Investing.com

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