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Gold Down over Expectations of More Fed Interest Rate Hikes

Published 14/06/2022, 01:28 pm
© Reuters
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By Zhang Mengying

Investing.com – Gold was down on Tuesday morning in Asia and hovered near a four-week low. Wall Street entered a bear market as investors are worried about a recession caused by more aggressive interest rate hikes from the U.S. Federal Reserve.

Gold futures edged down 0.17% to $1,828.35 by 11:17 PM ET (3:17 AM GMT). The dollar which normally moves inversely to gold, inched down on Tuesday morning.

Asian markets tumbled after Wall Street entered a bear market. Bond yields hit a two-decade high, which dented the demand for the non-yield yellow metal.

Goldman Sachs (NYSE:GS) forecast a 75-basis point (bp) interest rate hike from the Fed’s June policy meeting on Wednesday. A 75-bp hike would be the biggest since 1994.

For other central banks, the Bank of England will hand down its policy decision on Thursday.

The Bank of Japan (BOJ) will hand down its policy decisions on Friday. As the yen fell to 24-year lows to the dollar, Japanese Finance Minister Shunichi Suzuki reiterated on Tuesday the government will coordinate with the BOJ.

In other precious metals, silver X %. Platinum fell 0.93% while palladium climbed 0.27%.

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