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Gold Futures Settle Lower For 4th Straight Day

Gold futures settled lower on Tuesday, losing ground for a fourth straight session, amid expectations the Federal Reserve will start hiking interest rates beginning in mid-2022.

Following President Joe Biden nominating Fed Chair Jerome Powell for another term, the markets are bracing for tighter monetary policy from the central bank sometime in the near future.

Gold futures ended down by $22.50 or about 1.2% at $1,783.80 an ounce, the lowest settlement since November 3.

Silver futures for December ended lower by $0.862 at $23.435 an ounce, while Copper futures for December settled at $4.4235 per pound, gaining $0.0270.

Fed Chief Powell has been supportive of taking action to help fight soaring inflation. His nomination provided a little bit more legitimacy to market pricing in terms of policy tightening next year.

Traders were also betting on an ECB rate hike next year after ECB policymaker Francois Villeroy de Galhau, said on Monday that the central bank is "serious" about ending its emergency bond-buying program in March and may not need to expand regular asset purchases to cover the shortfall.

Separately, board member Isabel Schnabel said today that the risks to inflation are skewed to the upside and that plans to end pandemic emergency bond purchases remain valid.

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