Gold retreats as traders brace for hefty Fed rate hike

Image Credit: Google  Image Credit: Google 

Gold prices retreated on Thursday as the market awaited an expected interest rate hike by the U.S. Federal Reserve later in the day. 

Image Credit: Google 

With traders’ bets firmly entrenched that a 25-basis point move is a done deal.

Image Credit: Google 

The Fed is widely expected to lift rates for the second time this year and only the third time since 2006 at its two-day policy meeting, which ends on Thursday.

Image Credit: Google 

The central bank is expected to reiterate that it intends to raise rates at a gradual pace. 

Image Credit: Google 

Although with inflation moving higher and unemployment at a 16-year low, some Fed officials have recently suggested the need for a faster tightening cycle.

Image Credit: Google 

Gold fell as much as $8 an ounce to a low of $1,262.81.

Image Credit: Google 

It was down 0.4 percent at $1,264.30 by 1009 GMT. U.S. gold futures for August delivery were down $3.70 an ounce at $1,265.10.

Image Credit: Google 

"The market is expecting the Fed to hike rates, but the key will be in the accompanying statement and how dovish or hawkish it sounds," said Harry Tchilinguirian. 

Image Credit: Google 
Image Credit: Google 

Global head of commodity markets strategy at BNP Paribas.

Image Credit: Google 

"A lot will depend on that. If the Fed turns out to be more hawkish than expected, that could be negative for gold."

Image Credit: Google 

The Fed is expected to lift rates for the second time this year and only the third time since 2006 at its two-day policy meeting, which ends on Thursday.

Image Credit: Google 

Check Out 7 Best Gold IRA Companies With The Highest ROI In 2022

Click Here