Gold Heads for Weekly Drop as Fed Officials Reiterate Rate Hikes
- Size of next interest-rate hike in September is being debated
- Bullion declines to three-week low as dollar, yields advance
Two hundred and fifty gram gold bars.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
Gold headed for the first weekly decline in five as traders weighed reiteration from Federal Reserve officials that they’re determined to hike interest rates to fight inflation.
Policy makers offered divergent views on the size of the next interest-rate increase, but they agreed on the need to keep raising interest rates. St. Louis’s James Bullard urged another 75 basis-point move while Kansas City’s Esther George struck a more cautious tone. Richmond’s Thomas Barkin echoed that resolve on Friday, noting the risk those efforts could cause a recession.