Gold prices slip on expectations of higher interest rates

Gold prices slip on expectations of higher interest rates

Spot gold was down 0.1% at $1,839.39 per ounce, as of 0046 GMT. U.S. gold futures also eased by 0.1% to $1,841.80.







Reuters









June 07, 2022 / 06:53 AM IST





Gold prices extended losses for a third straight session on Tuesday, as expectations of interest rate hikes in the United States and Europe dulled bullion's demand.

FUNDAMENTALS

* Spot gold was down 0.1% at $1,839.39 per ounce, as of 0046 GMT. U.S. gold futures also eased by 0.1% to $1,841.80.

* The Federal Reserve is on track for half point interest rate increases in June, July, and last week's jobs report boosted expectations of continued tightening by the U.S. central bank.

* Friday's CPI report is now being awaited for further clues on the pace of U.S. rate increases.

* The European Central Bank also meets later this week as investors ramp up their bets on interest rate hikes this year.

* Higher rates dent gold's appeal as they increase the opportunity cost of holding non-yielding bullion.

* Japan's real wages posted the largest drop in four months in April, the government said on Tuesday, as a surge in inflation eclipsed a rise in nominal wages.

* India's