Gold hits over 2-week low on hawkish Fed bets, firmer dollar

Gold hits over 2-week low on hawkish Fed bets, firmer dollar

Spot gold was down 0.3% at $1,923.74 per ounce, as of 0321 GMT, hitting its lowest since April 7. U.S. gold futures were down 0.6% at $1,923.30.







Reuters









April 25, 2022 / 10:45 AM IST





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Gold prices dipped on Monday to their lowest in more than two weeks, as bets for an increasingly aggressive and hawkish U.S. Federal Reserve approach to tightening monetary policy boosted the dollar and pressured demand for bullion.

Spot gold was down 0.3% at $1,923.74 per ounce, as of 0321 GMT, hitting its lowest since April 7. U.S. gold futures were down 0.6% at $1,923.30.

Although the 10-year U.S. Treasury yield is nearing 3% and theoretically that's supposed to be a tipping point for gold, it is more about real yields that are starting to catch up and that will weigh on gold, said Stephen Innes, managing partner at SPI Asset Management. [US/]

With expectations for a half-percentage point interest rate hike at the Fed's May meeting now locked in, traders on Friday piled into bets that the U.S. central bank will go even bigger in subsequent months.

The dollar firmed near its highest in two years, making