Gold at 3 month low hovering 1904 $ an ounce

Gold at 3 month low hovering 1904 $ an ounce

Rising U.S. interest rates bode poorly for gold and other metals, given that they push up the opportunity cost of holding non-yielding assets. This notion had battered gold through 2022, and has kept the yellow metal trading negative so far this year.

Speaking at a European Central Bank forum, Powell said that while the central bank has “come a long way,” there still stood the possibility that interest rates will rise further.

His comments pushed up the dollar and Treasury yields, while weighing on the outlook for non-yielding assets such as gold and other metals. Markets also began pricing in a greater possibility for a rate hike at the Fed’s next meeting in late-July.

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