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Gold Slide To Monthly Low On Rate Hike Outlook

Gold prices touched a monthly low Wednesday, as a top central banker noted signs of that inflation will continue to pick up.

Also, U.S. stocks were mixed through mid-day, denting gold's safe haven appeal.

April gold was down $14.90, or 1.1%, to settle at $1,314.60/oz, the lowest since January 9.

While the Fed should hold off on interest rate increases until at least mid-2018, a pick up in consumer prices could warrant as many as four rate hikes by year's end, according to Chicago Federal Reserve President Charles Evans.

Evans, one of the more dovish members of the Fed, does not have a vote on the FOMC this year but voted against the most recent rate hike in December.

Meanwhile, his colleague Fed New York President William Dudley said the recent downturn in the stock market does not change the outlook for interest rates or the broader economy.

"This wasn't that big a bump in the equity market," Dudley said in New York on Wednesday. "The stock market had a remarkable rise over a very long time with extremely low volatility.

"My outlook hasn't changed just because the stock market's a little bit lower than it was a few days ago. It's still up sharply from where it was a year ago."

by RTTNews Staff Writer

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