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Gold futures fell on Monday, as investors choose the greenback over the yellow metal as the safe place to hide while the Federal Reserve ratchets up interest rates.
Futures
GC00,
fell 0.9%, or nearly $17, to $1866.20 an ounce.
Gold futures are up 2% this year, compared to the 8% rise for the U.S. dollar index
DXY,
“The dollar is proving the haven asset of choice at a time of continued falls on equity markets in the wake of the Federal Reserve’s trajectory of interest rate hikes and now concerns over China’s economic growth due to the ongoing COVID-related lockdown,” said Rupert Rolwing, market analyst at Kinesis Money.
Friday’s data showing a 428,000 gain in nonfarm payrolls and an unchanged unemployment of 3.6% did little to change the market’s outlook of steep Fed rate hikes. Traders are looking ahead of Wednesday’s release of the consumer price index, which could show a peak in inflation.
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