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Gold falls to about $4,215 as stronger dollar and hawkish Fed bite
XAU/USD slipped to around $4,215 in early Asian trading, after Fed officials signaled additional rate increases may be needed to curb still elevated inflation.
Gold prices fell to around $4,215 in early Asian trading on Monday, according to FXStreet.
The move was attributed to a firmer US dollar and hawkish comments from US Federal Reserve policymakers that pressured bullion.
FXStreet notes that expectations for higher-for-longer interest rates strengthened after Fed officials said additional rate increases may be needed to address unacceptably high inflation, including remarks from Cleveland Fed President Beth Hammack, Fed Governor Michael Barr, and support from Fed President Tom Barkin and Boston Fed President Susan Collins.
The outlet also pointed out that higher interest rates typically weigh on gold because the metal does not pay interest, making yield-bearing assets more attractive.
Latest closeGold $4,320.50 ▲0.5%