Metals Stocks: Gold logs lowest finish in more than 3 weeks as U.S. dollar’s jump outshines haven appeal

by | Jun 13, 2022 | Stock Market

Gold futures declined Monday, with prices marking their lowest settlement in more than three weeks despite a global equity market selloff as strength in the U.S. dollar outshined the yellow metal’s appeal as a haven investment. Gold for August delivery

fell $43.70, or 2.3%, to settle at $1,831.80 an ounce on Comex. Prices based on the most-active contract settled at the lowest since May 18, according to FactSet data.

July silver
sank 68 cents, or 3.1%, to $21.255 an ounce, with prices at their lowest finish since May 13. Gold had seen prices rise on Friday as stocks and other assets perceived as risky came under pressure following data that showed the U.S. consumer-price index rose at a 40-year high of 8.6% year-over-year in May, defying expectations of investors looking for evidence that inflation had peaked. The reading is seen prompting the Federal Reserve to move even more aggressively than expected to tighten monetary policy in an effort to get inflation under control, risking a recession. The Fed is widely expected to deliver a rate hike of 50 basis points, or half a percentage point, when it concludes a two-day policy meeting on Wednesday. “Rising rates and soaring yields present a serious headwind for gold short term, because the precious metal pays no income,” Adrian Ash, director of research at BullionVault, told MarketWatch.

Article Attribution | Read More at Article Source

Share This