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Spot Gold Heads for Fifth Monthly Drop as Fed Stays Hawkish on Rates

Spot Gold headed for a fifth straight monthly drop, the longest losing run in four years, as more robust monetary tightening by the Federal Reserve looks likely.

Bullion is trading near a one-month low as Fed officials stressed their commitment to defeating inflation, while remaining vague on how big their policy move will be at the rate decision meeting in September.

New York Fed chief John Williams said Tuesday that interest rates probably need to advance above 3.5% at some point to contain price pressures. Separately, Richmond Fed President Thomas Barkin struck a similarly resolute tone. 

Meanwhile, Atlanta counterpart Raphael Bostic called the duty to curb inflation “unshakable,” but also said he’d be open to dialing back the pace of increases if prices cooled. That followed Chair Jerome Powell’s speech last week, where he stressed that bringing price pressures down toward the Fed’s 2% target was the “overarching focus,” despite the tightening likely to cause pain for US households and businesses.

Spot gold was little changed at $1,715 an ounce as of 7:17 p.m. in Singapore, and was down 2.7% for August. Prices fell to $1,707 on Monday, the lowest level since July 27.

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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