Gold Edges Lower On Rate Hike Fears
(RTTNews) - Gold prices fell toward $4,300 an ounce on Tuesday due to expectations for additional Federal Reserve rate hikes.
Spot gold dipped 0.6 percent to $4,317.77 an ounce while U.S. gold futures were down 0.7 percent at $4,352.15.
Hawkish signals from Federal Reserve policymakers reinforced expectations of further interest-rate hikes by the U.S. central bank this year.
Chicago Fed President Austan Goolsbee on Monday voiced concern that inflation pressure is spreading beyond tariffs and energy, potentially requiring more aggressive and front-loaded rate hikes.
The Fed may have to cause economic pain in the form of higher unemployment to combat stubbornly high inflation, he said in a speech in London.
The U.S. dollar index clung to gains ahead of a meeting between leaders from the U.S. and Gulf nations on the sidelines of UN General Assembly in New York.
Against the backdrop of the wars in Ukraine and Iran that show no signs of abating, U.S. President Donald Trump will have a flurry of diplomatic meetings with 11 world leaders.
Trump is set to address UN General Assembly later today and is expected to meet his Ukrainian counterpart Zelenskyy on Tuesday.
As the Saudi-Houthi conflict rages on, Trump is expected to meet Gulf leaders impacted by the war with Iran to discuss the conflict and focus on plans for a postwar strategy.
Investors also await the outcome of this week's summit between Trump and Chinese President Xi Jinping after U.S. Treasury Secretary Scott Bessent described weekend talks on AI, trade and investment with China's top trade negotiator Li Chenggang as "very successful."
