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
Global head of commodity markets strategy at BNP Paribas.
"A lot will depend on that. If the Fed turns out to be more hawkish than expected, that could be negative for gold."
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.