Hawkish Comments from Fed Governor Push Gold Prices Lower
As this week started, gold extended its losses after Christopher Waller, a Federal Reserve Governor, made hawkish comments that had been unexpected. He suggested that it was likely for the Fed to increase benchmark lending rates just as it was likely for the institution to lower rates during its next sitting. Markets reacted promptly to these comments and gold prices slid by at least 3%. Bullion was priced at $3,994 an ounce as the week’s trading started. The CME FedWatch Tool indicated a 45% likelihood of a rate hike in July. This was a sharp rise from the 35% chance that had been priced in prior to these hawkish statements. Traders gave…