Gold performed negatively in the week as the Fed signaled that it would continue its aggressive monetary tightening path longer than expected.
Gold is preparing to close the week with a decline after the Fed’s statement that it will not abandon its aggressive monetary tightening policy anytime soon.
Below, $ 1,775 was tested on the week’s last trading day.
Spot gold, which had a volatile week, passed $1,800 an ounce on Tuesday after released data showed US inflation slowing.
But the Fed’s hawkish comments on Wednesday helped gold fall below that threshold.
“Gold is weakening as markets fear global central bank tightening will increase recession fears and bolster the dollar. Gold will eventually return to safe-haven status, but before that, I’m convinced the Fed won’t meet its hawk threats,” Oanda Senior Market Analyst Ed Moya said in a memo. We need to see more market players who are.
