Commodities News

Gold Down as Investors Brace for an Expected U.S. Interest Rates Hike

By Zhang Mengying – Gold was down on Wednesday morning in Asia ahead of the policy decision from the U.S. Federal Reserve.

Gold futures edged down 0.15% to $1,715.20 by 11:52 PM ET (3:52 AM GMT). The dollar, which normally moves inversely to gold, edged down on Wednesday morning.

U.S. equities fell on Tuesday ahead of an expected interest rate hike decision from the Fed as investors were concerned about the slowing economy with signs of energy woes in Europe.

The Fed is widely expected to hike interest rates by another 75 basis points at the conclusion of its policy meeting on Wednesday.

The International Monetary Fund warned the world economy may soon be on the cusp of an outright recession. Monetary tightening, Europe’s energy shortages over Russia’s invasion of Ukraine and China’s property sector, and COVID curbs remain the headwinds to the global economic rebound.

U.S. Conference Board (CB) Consumer Confidence dropped to 95.7, a near two-year low in July amid persistent worries about soaring inflation and higher rates.

In other precious metals, silver fell 0.28%. Platinum fell 0.23% while palladium climbed 0.38%.

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