Gold price falls to USD 1,981 per ounce
Gold prices fell further on Wednesday 17th May as the dollar rose after comments from U.S. Federal Reserve officials cast doubt on interest rate cuts this year.
Spot gold fell another 0.3% to $1,981.95 an ounce, after falling below $2,000 the previous session. US gold futures fell 0.4% to $1,985.60 an ounce.
Meanwhile, the U.S. dollar index hit a six-week high, eroding the appeal of bullion, which also rivals the currency as a safe haven, especially among overseas buyers.
Reiterating the central bank’s determination to contain inflation, Chicago Fed Chair Austan Goolsbee said it was “far too premature to talk about lowering rates”, while Chicago Fed Chair Cleveland’s Loretta Mester said rates were not yet at a point where the bank could hold steady. .
A Reuters poll showed the Fed holding rates steady this year. Traders are pricing in a roughly 75% chance the Fed will hold rates in June, with cuts still expected late in the second half of the year, per Fed Fund Futures.
