Gold Futures Settle Sharply Lower As Dollar Climbs Up

Gold prices fell sharply on Tuesday as the dollar climbed higher amid rising prospects of a series of sharp interest rate hikes by the Federal Reserve.

The dollar posted strong gains against most of its major counterparts. The dollar index surged to 106.79, gaining about 1.6%.

Gold futures for August ended lower by $37.60 or about 2.1% at 1,763.90 an ounce.

Silver futures for September ended down by $0.546 at $19.121 an ounce, while Copper futures for September settled at $3.4150 per pound, down $0.1890 from the previous close.

Data from the Labor Department showed near orders for manufactured goods increased 1.6% month-on-month in the month of May, following an upwardly revised 0.7% rise a month earlier.

Factory orders excluding transportation in the United States increased 1.7% month-over-month in May of 2022, following an upwardly revised 0.6% rise in April.

A survey showed business growth across the euro zone slowed further last month, partly due to inflationary pressures.

The Bank of England said in its latest biannual Financial Stability Report that the global economic outlook has "deteriorated materially" and that banks should ramp up capital buffers to ensure they can weather the storm.

Investors also awaited the release of the minutes of the Federal Reserve's latest policy-setting meeting on Wednesday. The minutes of the ECB's previous policy meeting are due on Thursday.

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