Gold Declines as Powell Backs Rate Hikes to Fight Inflation
- Metal fell more than $17 in a minute before paring some losses
- Ukraine war is adding to price pressures across commodities
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Gold dropped from near a 13-month high as risk sentiment was buoyed by Federal Reserve Chair Jerome Powell saying the U.S. central bank remains committed to fighting inflation with rate hikes.
Powell backed a quarter-point interest-rate hike this month to commence a series of increases, and didn’t rule out a larger move at some stage, despite uncertainty caused by Russia’s invasion of Ukraine. U.S. equities advanced, while 10-year Treasury yields gained.