Investing.com — Another day in gold and another price slide on fears of a Fed resumption in rate hikes.
on New York’s Comex settled at $1,933.80 an ounce, down $10, or 0.5%, on the day. The session low of $1,920.45 came close to the three-month bottom of $1,919.85 struck on Friday.
The , which reflects physical trades in bullion and is more closely followed than futures by some traders, was at $1,913.26 by 16:35 ET (20:35 GMT), down $9.91, or 0.5%.
The slide in gold came as latest data showed Americans still spending with little restraint despite their complaints about the economy.
Sales of in the United States, meanwhile, jumped 20% year-on-year last month.
Taken together, the home sales and consumer confidence readings suggested that a Federal Reserve-monitored reading on inflation due on Friday could also come in stronger than expected.
In the 12 months through April, the headline Personal Consumption Expenditures, or index, along with , which strips out volatile food and energy prices, were running well above the Fed’s 2% target.
“Gold remains under pressure as the US consumer still looks strong,” said Ed Moya, analyst at online trading platform OANDA, noting that data at hand paints the “picture of a resilient economy that could be subject to further Fed tightening”.
The Fed paused monetary tightening at its June meeting but signaled more hikes ahead. Economists predict another quarter percentage point hike by the central bank at its that will boost lending rates to a peak of 5.5%.
Read the full article here