Gold News
In Gold News today, Gold settled at a second straight weekly loss, as the expectation for an increase in U.S. interest rates as early as next month grew. In turn, pushing prices to their lowest levels since late April.
“Short-term gold investors are now on the sidelines on expectations of a…June interest rate hike,” said Chintan Karnani, chief market analyst at Insignia Consultants.
Karnani has advised investors to divert to investing in mental for the short term if this current trend in gold prices persist.
Gold prices have suffered this week as the Federal Reserve’s last policy meeting, released Wednesday, showed officials were considering raising interest rates at their next meeting in June. However, stating that this will only be the case if economic data displayed strong growth in the U.S. Higher rates generally weigh on gold prices because the metal pays its holders nothing and struggles to compete with yield-bearing assets when borrowing costs rise.
Gold has risen 18% year to date, as economic uncertainty has sent investors to haven assets. The Federal Reserve has suggested that the rate of which it will increase interest rates will be slow, thus boosting gold prices.
