Gold at three-week high as Fed might slow rate hikesBloombergGold on Friday hit a more than three-week high, amid speculation that the US Federal Reserve could slow the pace of interest rate increases as the US economy slows. While the Fed raised rates by 75 basis points again this week, data showing that the US is in a technical recession signaled that the central bank could become less aggressive as it continues to combat inflation. Gold markets are set-up for additional price weakness to ensue,” TD Securities senior strategist Daniel Ghali said in a note. “If the US economic data turn out to be weaker next week, gold is likely to make further gains,” Commerzbank AG analyst Carsten Fritsch said in a note. “This applies in particular to the report on the labor market, as Fed Chair Powell has still been describing the market as robust, which besides the persistently high inflation is another argument in favor of further rate hikes,” Fritsch said.
Source: Taipei Times July 31, 2022 02:44 UTC