Gold is trading near one-month lows as Federal Reserve officials continued their hawkish commentary while refraining from giving any solid hint on how big a potential rate hike would be in the near term.
This is the fifth consecutive monthly drop, the longest losing streak in four years, reported Bloomberg. Spot gold was trading near $1,723.17 an ounce, having lost 2.4% in August.
Fed Officials’ Comments: New York Fed chief John Williams said on Tuesday that interest rates probably need to advance above 3.5% at some point to contain price pressures, according to Bloomberg. Richmond Fed President Thomas Barkin, too, struck a similarly resolute tone, it said.
Atlanta Fed Chief Raphael Bostic said the duty to curb inflation is “unshakable,” while also stating he would be open to dialing back the pace of hikes if prices cooled, according to the report.
Federal Reserve Chair Jerome Powell indicated in his Jackson Hole speech last week that another unusually large hike could be appropriate at the next Federal Open Market Committee (FOMC) meeting which is scheduled during the last week of September.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.