WASHINGTON (Alliance News) – Gold futures continued to fall Thursday, hitting their lowest in 7 weeks on expectations the Federal Reserve will raise interest rates in June or July.
Fed. Gov. Jerome Powell this morning joined the chorus of Fed officials talking about tightening in the near term.
“If incoming data continue to support those expectations, I would see it as appropriate to continue to gradually raise the federal funds rate. Depending on the incoming data and the evolving risks, another rate increase may be appropriate fairly soon,” Powell said.
Earlier in the day, a report from the Commerce Department showed a sharp jump in durable goods orders in April.
“As far as the June Fed decision goes, this data has not taken the argument very far forward,” said ING Chief International Economist Rob Carnell. “We remain slightly in favor of a July hike, but the outcome remains data dependent.”
June gold fell USD3.40, or 0.3%, to settle at USD1,220.40 an ounce.
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