Gold prices fell as bets the Fed will pause the current tightening cycle.
Gold yesterday settled down by -0.7% at 59723 as odds that the Fed will halt its current tightening cycle or maybe lower interest rates this year decreased. While numerous Fed officials signaled that the anticipated slowdown in rate rises in June is questionable in their comments, the claims data confirmed assumptions that the employment market is still strong. The dollar and Treasury rates were supported by the hope that the US debt ceiling dispute would be resolved, which put pressure on gold prices. The Richmond Fed’s Thomas Barkin stated that he is not convinced that inflation is on a continuous decrease down to the United States central bank’s 2% objective.