Gold price drops on 11th Aug, 2022 as Fed officials pointed at aggressive hikes in interest rate

Gold price drops on 11^th Aug, 2022: Gold is extremely sensitive to the changing U.S. interest rates. As the Treasury yields and dollar rebounded after the Federal Reserve officials’ comments, gold price drops on 11^th Aug, 2022 (Thursday) by 0.2%. The Federal Reserve officials hinted at massive hikes in interest rate despite prominent signs of slowing the inflation in the U.S. Read the complete news and latest finance news on Money Niyantran.

Gold price drops: Highlights

• Spot gold fell in the US by 0.2 per cent, to $1,788.07 per ounce, as of 0123 GMT after being priced at $1,807.79 on 5^th July, 2022 (Wednesday). U.S gold futures dipped nearly 0.5% to USD 1,805.10.
• US consumer price hasn’t risen in Italy in the month of July because of sharp drop in the price of gasoline. This was the first sign of relief for citizens of America who have only watched inflation increase for the past two years.
• However, Neel Kashkari, Minneapolis Fed Bank President opined that he strongly believes that the U.S. central bank will have to raise the existing policy rate to 3.9% by the end of the year and to 4.4% by 2023’s end to combat inflation. Charles Evans, the Feb President of Chicago expects that U.S. interest rates will reach 4 per cent next year.

• Gold price drops as gold is particularly sensitive to the upsurge in interest rates in the U.S., as these double the opportunity expense of holding non-yielding bullion and boosting the dollar.
• Gold price drops: SPDR Gold Trust, the biggest gold-backed exchange-trade fund of the world, asserted its holdings dropped 0.17 per cent, amounting to 997.42 tonnes on 9^th Aug, 2022 (Wednesday) from 999.16 tonnes on 8^th Aug, 2022 (Tuesday).
• Platinum price rose by 0.2%, arriving at $20.53 per ounce while palladium also gained 0.2 per cent and is at $2,244.33.
• The dollar index has regained some footing and traded up 0.1 per cent at 105.280 ever since it has hit its lowest in July.

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