Home » Gold (-5%) and silver (-6%) major defeated with Hawkish Fed. Dollar rally also knocks out copper

Gold (-5%) and silver (-6%) major defeated with Hawkish Fed. Dollar rally also knocks out copper

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Gold slides sharply in the wake of strong US dollar appreciation after the Federal Reserve signaled it could raise interest rates sooner than expected. The spot price of the yellow metal is almost -5% at $ 1,770 an ounce, the lowest of over a month and a half. Worse is the silver which marks -6.5% to below $ 26 level. Industrial metals are also in trouble with copper at -3%.

The US dollar, which usually moves inversely to gold, hit a two-month high after the Fed with US Treasury yields rising.

The indications offered yesterday by the Federal Reserve have shaken the market, with interest rates that could rise sooner than expected.
From the Fed meeting it emerged that the dot plots, that is the average of the rate expectations of each member of the FOMC, indicate two rate hikes in 2023. The Fed has revised upward the estimates on inflation growth to +3.4 % this year, well above the + 2.4% expected in the previous outlook. Jerome Powell also admitted that inflation is higher and may be more persistent than previously thought.

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