Gold Falls After Two-Day Surge With Fed Rate Stance in Focus
- Fresh data show US economy remains resilient, boosting dollar
- Bullion caught in changing views on central banks’ rate path
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Gold slid toward $1,700 an ounce as traders assess whether the US central bank may maintain its hawkish stance after a slew of mixed US data.
The precious metal fell as much as 1.5% Wednesday after fresh data showed the US economy remains resilient. That may give the Federal Reserve more room to aggressively raise interest rates to fight inflation. The dollar and Treasury yields extended gains after the print, pressuring bullion because it doesn’t pay interest.