GLDM - Gold posts third straight drop with pause in Fed rate hikes priced in

2023-06-13 15:57:49 ET

Gold futures fell for a third straight session Tuesday after data showed a modest rise in U.S. consumer prices ahead of tomorrow's Federal Reserve policy announcement.

The Fed is widely expected to pause its interest rate hikes, which analysts say already is priced into the gold market.

Front-month Comex gold ( XAUUSD:CUR ) for June delivery closed -0.5% to $1,944.60/oz, and front-month June silver ( XAGUSD:CUR ) settled -0.9% to $23.756/oz for a second straight daily loss.

ETFs: ( NYSEARCA: GLD ), ( GDX ), ( GDXJ ), ( IAU ), ( NUGT ), ( PHYS ), ( GLDM ), ( AAAU ), ( SGOL ), ( BAR ), ( OUNZ )

Analysts said gold was unable to maintain initial gains after inflation hit the lowest levels since early 2021, giving way to concerns that stubborn underlying inflation may produce a hawkish Fed dot-plot pointing to fewer than expected rate cuts in 2024.

"For gold to rally, it needs Wall Street to become confident that the Fed is done raising rates," Oanda's Edward Moya wrote, adding the inflation report was in-line "but some Fed members might be concerned that core pricing pressures are looking sticky."

More on gold:

• Five Reasons Why Investors Should Have Exposure To Gold
• Fundamentals For Gold And Silver Keep Improving
• Gold: Inflation And Standard Deviation

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