Gold Hits Three-Week Low as Yields Soar on Hawkish Fed
- Fresh data show inflation heating up in the UK and Canada
- Fedspeak points to continued aggressive monetary tightening
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Gold fell to the lowest in more than three weeks as Treasury yields and the dollar surged on expectations that the Federal Reserve will keep an aggressive pace of interest-rate hikes.
The precious metal joined a selloff in equities and bonds as bearish sentiment took hold against a backdrop of high global inflation data. Gold traders were also on edge after Minneapolis Fed President Neel Kashkari’s remarks late Thursday that the US central bank can’t pause its tightening campaign once its benchmark rate hits 4.5% to 4.75% if “underlying” inflation is still accelerating.