Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Gold slides over 1% on bets hawkish Fed tilt may stem inflation

12/02/2021 | 11:59am EST

(Updates prices)

* Oil prices dip to multi-month lows

* Treasury's Yellen: Fed's job to avoid 'wage-price spiral'

Dec 2 (Reuters) - Gold dropped over 1% to a one-month low on Thursday, as investors latched on to signs of a seemingly hawkish tilt in U.S. monetary policy that could rein in rising consumer prices in future.

Spot gold was down 1.1% at $1,764.00 per ounce by 01:57 p.m. ET (1857 GMT), after hitting its lowest since Nov. 3.

U.S. gold futures settled down 1.2% at $1,762.70.

"The Fed policy shift and the suggestion that inflation fears are going to be lessening has taken the wind out of the (gold) bull sail," said Jim Wyckoff, senior analyst at Kitco Metals, pointing to a retreat in crude oil prices that may suggest ebbing inflation pressures as well.

Gold seemed to take cues from increased bets that early interest rate hikes – translating into higher opportunity cost of holding non-yielding gold – would curb future inflation, flattening the yield curve.

While the gain in stock markets may suggest improved appetite for risk, further volatility in equities, especially amid lingering uncertainty over the Omicron coronavirus variant, may put a floor under prices of safe-haven gold, Wyckoff added.

Although Wall Street rebounded boosted by financials shares, rising cases of the virus variant globally continued to drive volatility across markets.

The prospect of a faster taper could cap the upside for bullion and boost the U.S. dollar and Treasury yields, in a further dent to gold's appeal, said Michael Hewson, chief market analyst at CMC Markets UK.

Adding to the rhetoric, U.S. Treasury Secretary Janet Yellen told the Reuters Next conference it was the Fed's job to ensure that the current run of high inflation does not evolve into a damaging and long-lasting "wage-price spiral" like in the 1970s.

Spot silver steadied at $22.31 per ounce, platinum gained 0.3% to $936.00 and palladium added 1.8% to $1,778.68. (Reporting by Asha Sistla and Arundhati Sarkar in Bengaluru; Editing by Shailesh Kuber and Krishna Chandra Eluri)


ę Reuters 2021
Latest news "Economy & Forex"
05:14pTexas synagogue hostage taker was a British citizen, FBI says
RE
05:08pImpact assessment, aid efforts underway as world responds to Tonga tsunami
RE
05:02pBiden, Japan PM Kishida to hold bilateral talks on Friday-White House
RE
05:00pUK's Johnson plans to scrap COVID-19 self-isolation law - The Telegraph
RE
04:36pGSK And Pfizer Hold Out For 60 Bln Stg Bid For Consumer Health Unit - FT
RE
04:36pInvestors push for higher price or spin-off after rejecting unilever’s ú50 bln offer- ft
RE
04:33pGsk and pfizer hold out for ú60bn bid for consumer health unit - ft
RE
04:09pSelf-isolation law set to be scrapped in uk in favour of move towards Ĺlearning to live with covid’ - the telegraph
RE
04:04pBiden calls Texas synagogue attack 'act of terror'
RE
03:54pPioneering Tuskegee Airman Charles McGee dies at 102
RE
Latest news "Economy & Forex"